ARM (NASDAQ:ARM) Shares Up 2.8% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 2.8% during mid-day trading on Monday . The company traded as high as $215.50 and last traded at $215.12. Approximately 8,352,985 shares traded hands during mid-day trading, an increase of 7% from the average daily volume of 7,821,017 shares. The stock had previously closed at $209.16.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ARM. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Needham & Company LLC increased their price target on ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Royal Bank Of Canada lifted their price objective on ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Sanford C. Bernstein assumed coverage on ARM in a research note on Monday. They issued an “outperform” rating and a $300.00 price objective on the stock. Finally, UBS Group decreased their target price on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and a consensus target price of $203.79.

ARM Trading Up 2.8%

The business has a 50-day moving average of $164.92 and a 200 day moving average of $140.32. The firm has a market capitalization of $227.28 billion, a P/E ratio of 256.10, a price-to-earnings-growth ratio of 7.60 and a beta of 3.40.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The firm had revenue of $1.49 billion during the quarter. As a group, research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Buying and Selling at ARM

In other news, insider Spencer Collins sold 51,961 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares of the company’s stock, valued at $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Jason Child sold 21,280 shares of the company’s stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the sale, the chief financial officer owned 174,706 shares in the company, valued at $25,921,129.22. This represents a 10.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 135,673 shares of company stock valued at $24,616,433.

Institutional Investors Weigh In On ARM

Several institutional investors have recently bought and sold shares of the stock. Capital Research Global Investors bought a new position in ARM during the 3rd quarter valued at $243,098,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of ARM by 2,623.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd purchased a new stake in shares of ARM in the third quarter valued at about $202,980,000. Employees Provident Fund Board bought a new position in shares of ARM during the fourth quarter valued at about $120,241,000. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of ARM by 1,203.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

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.