Mizuho Forecasts Strong Price Appreciation for ARM (NASDAQ:ARM) Stock

ARM (NASDAQ:ARM) had its price objective increased by stock analysts at Mizuho from $160.00 to $230.00 in a report released on Monday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s price target would indicate a potential upside of 54.25% from the company’s previous close.

Several other equities research analysts also recently issued reports on the stock. TD Cowen cut their target price on shares of ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and lowered their price target for the stock from $160.00 to $120.00 in a research report on Monday, December 15th. Barclays reaffirmed an “overweight” rating and issued a $165.00 price objective on shares of ARM in a research report on Thursday, March 26th. Benchmark reiterated a “hold” rating on shares of ARM in a research note on Thursday, February 5th. Finally, Oddo Bhf set a $170.00 target price on ARM in a report on Monday, January 5th. Nineteen 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. According to MarketBeat.com, ARM presently has a consensus rating of “Moderate Buy” and an average price target of $171.50.

ARM Stock Performance

Shares of ARM opened at $149.11 on Monday. The company has a market cap of $157.54 billion, a price-to-earnings ratio of 198.81, a PEG ratio of 6.65 and a beta of 3.33. ARM has a 1-year low of $80.00 and a 1-year high of $183.16. The company’s fifty day simple moving average is $126.06 and its 200 day simple moving average is $133.99.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter last year, the company posted $0.39 earnings per share. The company’s revenue for the quarter was up 26.3% compared to the same quarter last year. As a group, research analysts forecast that ARM will post 0.9 earnings per share for the current year.

Insider Activity

In other news, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the sale, the chief executive officer owned 290,965 shares in the company, valued at $46,894,829.05. The trade was a 7.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Jason Child sold 21,280 shares of the company’s stock in a transaction that occurred on Wednesday, March 25th. The shares were 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 $25,921,129.22. The trade was a 10.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 53,133 shares of company stock worth $8,288,586.

Institutional Trading of ARM

Hedge funds have recently added to or reduced their stakes in the company. Rockefeller Capital Management L.P. boosted its stake in ARM by 0.7% in the 4th quarter. Rockefeller Capital Management L.P. now owns 26,745 shares of the company’s stock valued at $2,923,000 after purchasing an additional 173 shares during the period. Fund Advisors of America Inc FL bought a new position in ARM during the 4th quarter worth $663,000. Hsbc Holdings PLC lifted its holdings in shares of ARM by 25.2% during the fourth quarter. Hsbc Holdings PLC now owns 92,992 shares of the company’s stock worth $10,281,000 after buying an additional 18,717 shares in the last quarter. SHP Wealth Management acquired a new stake in shares of ARM during the fourth quarter worth $69,000. Finally, Employees Provident Fund Board bought a new stake in shares of ARM in the fourth quarter valued at about $120,241,000. 7.53% of the stock is owned by institutional investors and hedge funds.

ARM Company Profile

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.