ARM (NASDAQ:ARM) Shares Up 3.3% – Still a Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 3.3% on Thursday . The company traded as high as $228.68 and last traded at $228.50. 8,353,041 shares were traded during mid-day trading, an increase of 7% from the average session volume of 7,788,885 shares. The stock had previously closed at $221.21.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s software and hardware ecosystem continues to reinforce its competitive moat, supporting its leadership in smartphones and device computing. ARM’s Powerful Ecosystem Advantage Drives Market Leadership
• Positive Sentiment: Recent reporting says Arm and SoftBank tried to buy Cerebras, signaling continued ambition to expand Arm’s footprint in AI semiconductors. Arm’s Cerebras Bid Sheds Light On AI Chip Expansion Plans
• Positive Sentiment: UBS data showed ARM gaining server chip share at Intel’s expense, reinforcing the bull case for Arm’s long-term growth in data center and AI-related markets. New report shows AMD and ARM continue server share gains at Intel’s expense
• Neutral Sentiment: Analysts warned that the AI trade may be taking a breather, which has weighed on chip stocks broadly rather than on ARM-specific fundamentals. The AI Trade Takes a Breather to End the Week
• Neutral Sentiment: A major insider sale by Spencer Collins may be adding near-term pressure, though it does not change the company’s operating outlook by itself. ARM Insider Spencer Collins Sells 51,961 Shares
• Negative Sentiment: Another market note linked ARM to warnings about a potential chip-stock bubble, contributing to the day’s risk-off sentiment in semiconductor names. Intel Stock Is Falling as Analyst Issues Chip-Stock Bubble Warning

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on ARM shares. Susquehanna raised their price objective on ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research report on Thursday, April 16th. TD Cowen lifted their price target on ARM from $165.00 to $265.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Benchmark reiterated a “hold” rating on shares of ARM in a report on Thursday, February 5th. Finally, Royal Bank Of Canada lifted their price target on ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a report on Thursday, May 7th. Nineteen 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. Based on data from MarketBeat, ARM currently has an average rating of “Moderate Buy” and an average target price of $199.61.

ARM Trading Down 8.5%

The company has a fifty day moving average of $164.92 and a two-hundred day moving average of $140.59. The stock has a market capitalization of $220.98 billion, a price-to-earnings ratio of 249.00, a price-to-earnings-growth ratio of 7.88 and a beta of 3.40.

ARM (NASDAQ:ARM) last posted its earnings results 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 firm had revenue of $1.49 billion during the quarter. As a group, sell-side analysts predict that ARM Holdings PLC Sponsored ADR will post 1.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ARM news, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at $46,894,829.05. The trade was a 7.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total value of $3,157,313.60. Following the completion of the transaction, the chief financial officer directly owned 174,706 shares in the company, valued at approximately $25,921,129.22. This represents a 10.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 135,673 shares of company stock valued at $24,616,433 in the last three months.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Grey Fox Wealth Advisors LLC bought a new position in ARM in the 3rd quarter worth approximately $28,000. Syntax Research Inc. bought a new stake in shares of ARM during the first quarter valued at approximately $30,000. Mcguire Capital Advisors Inc. bought a new stake in shares of ARM during the fourth quarter valued at approximately $30,000. Navalign LLC bought a new position in ARM in the fourth quarter worth $33,000. Finally, FWL Investment Management LLC bought a new position in ARM in the second quarter worth $34,000. 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.