ARM (NASDAQ:ARM) Shares Up 3.7% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 3.7% during trading on Tuesday . The stock traded as high as $226.95 and last traded at $223.15. 11,004,579 shares traded hands during mid-day trading, an increase of 40% from the average session volume of 7,857,964 shares. The stock had previously closed at $215.12.

Analyst Ratings Changes

Several research firms have recently commented on ARM. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. Evercore reduced their price objective on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research note on Thursday, February 5th. Royal Bank Of Canada upped their price objective on ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research note on Thursday, May 7th. Wells Fargo & Company upped their price objective on ARM from $220.00 to $255.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Finally, Raymond James Financial restated an “outperform” rating on shares of ARM in a research note on Thursday, May 7th. Twenty equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, ARM currently has a consensus rating of “Moderate Buy” and a consensus target price of $203.79.

ARM Trading Up 3.7%

The firm has a market cap of $235.76 billion, a PE ratio of 265.65, a price-to-earnings-growth ratio of 7.60 and a beta of 3.40. The stock has a 50 day simple moving average of $166.81 and a 200-day simple moving average of $140.61.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The business had revenue of $1.49 billion during the quarter. On average, equities research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In other ARM news, insider Spencer Collins sold 51,961 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the sale, the insider owned 51,125 shares in the company, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Jason Child sold 21,280 shares of the stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total value of $3,830,400.00. Following the completion of the sale, the chief financial officer owned 153,426 shares of the company’s stock, valued at $27,616,680. The trade was a 12.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 135,673 shares of company stock worth $24,616,433.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ARM. Grey Fox Wealth Advisors LLC bought a new position in shares of ARM in the 3rd quarter valued at about $28,000. Syntax Research Inc. purchased a new stake in ARM in the 1st quarter worth about $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in ARM in the 1st quarter worth about $30,000. Mcguire Capital Advisors Inc. purchased a new stake in ARM in the 4th quarter worth about $30,000. Finally, Navalign LLC purchased a new stake in ARM in the 4th quarter worth about $33,000. Institutional investors own 7.53% of the company’s stock.

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.