ARM (NASDAQ:ARM) Releases Earnings Results, Beats Expectations By $0.02 EPS

ARM (NASDAQ:ARM) released its earnings results on Wednesday. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02, FiscalAI reports. ARM had a net margin of 18.81% and a return on equity of 15.03%. The firm had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion.

ARM Stock Up 0.5%

ARM traded up $0.49 during midday trading on Wednesday, hitting $105.04. 9,193,055 shares of the company traded hands, compared to its average volume of 6,590,614. The company’s 50-day moving average is $118.36 and its 200 day moving average is $138.76. The firm has a market capitalization of $110.97 billion, a PE ratio of 134.66, a price-to-earnings-growth ratio of 6.40 and a beta of 4.35. ARM has a 52 week low of $80.00 and a 52 week high of $183.16.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ARM. Moors & Cabot Inc. boosted its position in ARM by 5.3% in the third quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock worth $290,000 after purchasing an additional 103 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its position in shares of ARM by 0.7% during the third quarter. Mercer Global Advisors Inc. ADV now owns 25,362 shares of the company’s stock worth $3,588,000 after purchasing an additional 185 shares in the last quarter. Schnieders Capital Management LLC. grew its holdings in ARM by 9.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after buying an additional 200 shares in the last quarter. FWL Investment Management LLC bought a new stake in ARM in the 2nd quarter valued at $34,000. Finally, Main Street Financial Solutions LLC lifted its stake in ARM by 3.7% in the 2nd quarter. Main Street Financial Solutions LLC now owns 8,171 shares of the company’s stock worth $1,322,000 after purchasing an additional 289 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ARM. UBS Group cut their price objective on shares of ARM from $195.00 to $175.00 and set a “buy” rating on the stock in a report on Monday, January 26th. The Goldman Sachs Group lowered ARM from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $160.00 to $120.00 in a research report on Monday, December 15th. JPMorgan Chase & Co. lifted their price objective on ARM from $175.00 to $180.00 and gave the company an “overweight” rating in a research note on Thursday, November 6th. Needham & Company LLC reissued a “hold” rating on shares of ARM in a research note on Thursday, November 6th. Finally, Citigroup lowered ARM from a “buy” rating to a “hold” rating in a research report on Tuesday, January 13th. Sixteen research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and an average target price of $169.52.

About ARM

Arm Limited (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.