ARM (NASDAQ:ARM) Hits New 1-Year High – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price hit a new 52-week high on Tuesday . The stock traded as high as $428.60 and last traded at $420.6010, with a volume of 2670975 shares trading hands. The stock had previously closed at $412.55.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ARM shares. Royal Bank Of Canada increased their price target on ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Rosenblatt Securities upped their target price on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Susquehanna lifted their price target on shares of ARM from $170.00 to $210.00 and gave the company a “positive” rating in a research note on Thursday, April 16th. Guggenheim boosted their price target on shares of ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Finally, TD Cowen upped their price objective on shares of ARM from $165.00 to $265.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. 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. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $245.04.

ARM Stock Up 1.1%

The firm has a 50-day moving average price of $249.09 and a two-hundred day moving average price of $167.34. The firm has a market cap of $445.54 billion, a PE ratio of 500.40, a P/E/G ratio of 13.83 and a beta of 3.77.

ARM (NASDAQ:ARM) last posted 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. 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 at ARM

In other news, insider William Abbey sold 6,566 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. This represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Jason Child sold 31,920 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 301,338 shares of company stock worth $66,030,158 in the last quarter.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Amundi grew its holdings in shares of ARM by 24.8% in the first quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after purchasing an additional 2,345 shares during the period. Empowered Funds LLC boosted its holdings in ARM by 28.8% in the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. boosted its holdings in ARM by 9.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after purchasing an additional 200 shares during the last quarter. Bank of Nova Scotia purchased a new stake in shares of ARM in the 2nd quarter valued at approximately $556,000. Finally, State Street Corp increased its holdings in shares of ARM by 14.7% during the 2nd quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after buying an additional 56,656 shares during the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

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.