ARM (NASDAQ:ARM) Trading Up 3.3% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 3.3% on Tuesday . The stock traded as high as $361.95 and last traded at $354.75. 6,238,089 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 9,007,415 shares. The stock had previously closed at $343.58.

Analyst Ratings Changes

ARM has been the topic of several research analyst reports. UBS Group boosted their price target on shares of ARM from $260.00 to $470.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Needham & Company LLC reissued a “buy” rating and issued a $400.00 target price on shares of ARM in a research report on Tuesday, June 16th. Royal Bank Of Canada raised their target price on ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Finally, Susquehanna upped their price target on ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research note on Thursday, April 16th. Nineteen equities research 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 currently has an average rating of “Moderate Buy” and an average price target of $279.83.

ARM Stock Performance

The stock has a market capitalization of $336.74 billion, a P/E ratio of 375.33, a PEG ratio of 12.88 and a beta of 3.76. The business has a 50-day moving average price of $302.53 and a 200 day moving average price of $187.70.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The company 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 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the sale, the insider directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 248,205 shares of company stock worth $57,741,572 over the last quarter.

Hedge Funds Weigh In On ARM

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

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.