ARM (NASDAQ:ARM) Trading Up 8.3% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were up 8.3% during mid-day trading on Monday . The stock traded as high as $416.17 and last traded at $412.55. Approximately 13,904,382 shares were traded during trading, an increase of 59% from the average daily volume of 8,756,665 shares. The stock had previously closed at $380.81.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on ARM shares. Jefferies Financial Group set a $290.00 price target on ARM in a report on Thursday, May 21st. Morgan Stanley reissued an “equal weight” rating and set a $150.00 price objective (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. Bank of America upped their price target on ARM from $245.00 to $335.00 and gave the company a “neutral” rating in a report on Thursday, June 11th. Guggenheim boosted their price objective on ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Sanford C. Bernstein set a $500.00 price objective on ARM in a research note on Wednesday. Twenty investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given 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 $253.38.

ARM Price Performance

The company has a 50 day moving average price of $259.44 and a 200 day moving average price of $171.21. The firm has a market cap of $447.40 billion, a PE ratio of 498.67, a PEG ratio of 14.39 and a beta of 3.78.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. On average, equities analysts anticipate 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, CFO Jason Child sold 31,920 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the sale, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. This trade represents a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William Abbey sold 6,566 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the sale, the insider directly owned 20,563 shares in the company, valued at approximately $8,281,131.36. The trade was a 24.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 301,338 shares of company stock worth $66,030,158 in the last ninety days.

Institutional Trading of ARM

A number of hedge funds have recently added to or reduced their stakes in ARM. Rathbones Group PLC lifted its stake in shares of ARM by 4,638.8% in the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock valued at $54,660,000 after purchasing an additional 489,491 shares in the last quarter. Paragon Capital Management Inc. acquired a new stake in ARM in the fourth quarter valued at $826,000. Lansdowne Partners UK LLP bought a new position in ARM during the 3rd quarter valued at $8,486,000. Hyperion Asset Management Ltd acquired a new stake in shares of ARM during the 3rd quarter valued at approximately $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of ARM by 34.7% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after acquiring an additional 6,232 shares in 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.