ARM (NASDAQ:ARM) Trading 4.8% Higher – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded up 4.8% during mid-day trading on Tuesday . The company traded as high as $325.00 and last traded at $321.22. 10,840,669 shares were traded during trading, an increase of 32% from the average session volume of 8,198,217 shares. The stock had previously closed at $306.51.

Analysts Set New Price Targets

ARM has been the topic of several research reports. TD Cowen raised their price objective on ARM from $165.00 to $265.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Sanford C. Bernstein initiated coverage on ARM in a report on Monday, May 18th. They set an “outperform” rating and a $300.00 price objective on the stock. Susquehanna raised their price objective on ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a report on Thursday, April 16th. The Goldman Sachs Group raised their price objective on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a report on Thursday, May 7th. Finally, Mizuho raised their price objective on ARM from $230.00 to $255.00 and gave the stock an “outperform” rating in a report on Wednesday, May 6th. Twenty equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $208.79.

ARM Stock Performance

The stock has a fifty day moving average price of $182.87 and a 200-day moving average price of $144.53. The firm has a market capitalization of $339.69 billion, a PE ratio of 382.76, a P/E/G ratio of 11.13 and a beta of 3.40.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The business had revenue of $1.49 billion for the quarter. Research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the transaction, the insider directly owned 51,125 shares in the company, valued at approximately $10,824,696.25. This trade represents a 50.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares in the company, valued at $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 276,966 shares of company stock worth $56,798,645.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Compound Planning Inc. grew its stake in ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after buying an additional 69 shares during the last quarter. Rathbones Group PLC grew its stake in ARM by 0.7% during the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock worth $1,493,000 after buying an additional 70 shares during the last quarter. Kovack Advisors Inc. grew its stake in ARM by 2.0% during the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after buying an additional 72 shares during the last quarter. Murphy & Mullick Capital Management Corp grew its stake in ARM by 9.1% during the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 926 shares of the company’s stock worth $135,000 after buying an additional 77 shares during the last quarter. Finally, Balboa Wealth Partners grew its stake in ARM by 2.7% during the 3rd quarter. Balboa Wealth Partners now owns 3,108 shares of the company’s stock worth $440,000 after buying an additional 83 shares during the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.