ARM (NASDAQ:ARM) Trading 17.2% Higher – Time to Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 17.2% during trading on Monday . The company traded as high as $324.16 and last traded at $322.90. Approximately 12,851,217 shares changed hands during mid-day trading, an increase of 65% from the average session volume of 7,789,237 shares. The stock had previously closed at $275.61.

Analyst Ratings Changes

A number of brokerages have issued reports on ARM. Barclays lifted their target price on shares of ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. Needham & Company LLC reissued a “buy” rating and set a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. Morgan Stanley lifted their price objective on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Susquehanna upped their target price on ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Finally, Sanford C. Bernstein set a $500.00 target price on ARM in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $305.72.

ARM Stock Performance

The company has a market capitalization of $344.88 billion, a price-to-earnings ratio of 332.89, a P/E/G ratio of 8.17 and a beta of 3.89. The company has a fifty day simple moving average of $259.66 and a two-hundred day simple moving average of $248.00.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The firm had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period last year, the company earned $0.35 EPS. As a group, analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total value of $2,655,432.00. Following the sale, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at approximately $41,831,224.56. This trade represents a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of ARM. GAMMA Investing LLC increased its position in shares of ARM by 18.7% in the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after acquiring an additional 64 shares in the last quarter. Allworth Financial LP lifted its holdings in shares of ARM by 2.9% during the 2nd quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock valued at $804,000 after acquiring an additional 65 shares in the last quarter. MCF Advisors LLC lifted its holdings in shares of ARM by 11.7% during the 2nd quarter. MCF Advisors LLC now owns 764 shares of the company’s stock valued at $271,000 after acquiring an additional 80 shares in the last quarter. AdvisorNet Financial Inc boosted its position in ARM by 6.2% during the 1st quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after purchasing an additional 98 shares during the period. Finally, TD Waterhouse Canada Inc. increased its holdings in ARM by 0.5% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 18,674 shares of the company’s stock valued at $6,309,000 after purchasing an additional 102 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.