ARM (NASDAQ:ARM) Stock Price Up 12.1% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price was up 12.1% during mid-day trading on Wednesday. The company traded as high as $207.44 and last traded at $203.36. 6,709,294 shares traded hands during trading, a decline of 10% from the average session volume of 7,455,411 shares. The stock had previously closed at $181.49.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on ARM shares. JPMorgan Chase & Co. reduced their target price on shares of ARM from $255.00 to $245.00 and set an “overweight” rating for the company in a research report on Thursday, November 5th. Wells Fargo & Company cut their price objective on shares of ARM from $280.00 to $255.00 and set an “overweight” rating for the company in a report on Thursday, November 5th. The Goldman Sachs Group reiterated a “sell” rating and set a $160.00 price objective on shares of ARM in a research report on Thursday, November 5th. Barclays lowered their price objective on ARM from $360.00 to $325.00 and set an “overweight” rating on the stock in a research note on Thursday, November 5th. Finally, TD Cowen dropped their target price on ARM from $350.00 to $250.00 and set a “buy” rating for the company in a report on Thursday, November 5th. Eighteen 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 MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $296.38.

ARM Trading Down 4.6%

The firm has a market cap of $203.50 billion, a price-to-earnings ratio of 219.00, a P/E/G ratio of 5.87 and a beta of 3.93. The stock’s fifty day moving average price is $249.19 and its 200-day moving average price is $231.46.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.38 billion. ARM had a return on equity of 11.57% and a net margin of 17.13%. The company’s revenue for the quarter was up 27.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.39 earnings per share. Analysts predict that Arm Holdings PLC Sponsored ADR will post 1.11 earnings per share for the current year.

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Kings Path Partners LLC acquired a new stake in shares of ARM in the third quarter valued at $29,000. First Command Advisory Services Inc. lifted its stake in ARM by 158.8% during the 3rd quarter. First Command Advisory Services Inc. now owns 132 shares of the company’s stock worth $38,000 after acquiring an additional 81 shares in the last quarter. Evelyn Partners Investment Management Services Ltd purchased a new position in ARM during the 1st quarter valued at about $30,000. Allied Private Wealth LLC purchased a new position in ARM during the 2nd quarter valued at about $71,000. Finally, CX Institutional acquired a new position in ARM in the 3rd quarter valued at about $58,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

About ARM

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.