ARM (NASDAQ:ARM) Shares Up 1.7% – Should You Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 1.7% during mid-day trading on Thursday . The stock traded as high as $267.69 and last traded at $255.21. 4,857,891 shares were traded during mid-day trading, a decline of 40% from the average session volume of 8,100,679 shares. The stock had previously closed at $251.06.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ARM shares. HSBC lowered shares of ARM from a “buy” rating to a “hold” rating and increased their target price for the company from $255.00 to $315.00 in a report on Tuesday, July 14th. Wells Fargo & Company cut their price target on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Susquehanna upped their target price on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Bank of America reiterated a “neutral” rating on shares of ARM in a research note on Thursday, July 30th. Finally, TD Cowen dropped their target price on ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $305.12.

ARM Stock Performance

The stock has a market capitalization of $272.58 billion, a P/E ratio of 263.11, a PEG ratio of 7.16 and a beta of 3.90. The firm has a fifty day moving average price of $293.07 and a two-hundred day moving average price of $233.08.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the previous year, the company posted $0.35 EPS. The business’s quarterly revenue was up 22.4% compared to the same quarter last year. On average, research analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Activity

In other news, insider William Abbey sold 6,566 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This represents a 24.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at $4,765,414.50. The trade was a 48.23% decrease in their position. The disclosure for this sale is available in the SEC filing.

Institutional Investors Weigh In On ARM

Institutional investors and hedge funds have recently modified their holdings of the stock. Rathbones Group PLC lifted its holdings in shares of ARM by 4,638.8% in the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after acquiring an additional 489,491 shares during the last quarter. Partners Group Holding AG purchased a new position in ARM during the 4th quarter worth $798,000. Pacific Heights Asset Management LLC raised its holdings in shares of ARM by 48.6% in the fourth quarter. Pacific Heights Asset Management LLC now owns 275,000 shares of the company’s stock valued at $30,060,000 after acquiring an additional 90,000 shares in the last quarter. Swedbank AB raised its holdings in shares of ARM by 16.3% in the 4th quarter. Swedbank AB now owns 364,000 shares of the company’s stock valued at $39,789,000 after purchasing an additional 51,000 shares in the last quarter. Finally, Horizon Investments LLC raised its stake in ARM by 60.0% in the fourth quarter. Horizon Investments LLC now owns 16,767 shares of the company’s stock worth $1,833,000 after buying an additional 6,287 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.