ARM (NASDAQ:ARM) Stock Price Up 15.7% – Time to Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was up 15.7% on Monday . The company traded as high as $421.69 and last traded at $408.85. Approximately 20,412,111 shares traded hands during trading, an increase of 143% from the average daily volume of 8,410,192 shares. The stock had previously closed at $353.29.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Nvidia’s new AI PC chip uses Arm-based technology, reinforcing Arm’s role in next-generation computing and boosting investor enthusiasm for future licensing demand. Nvidia jumps into PCs with new Arm-based chip debuting in laptops from Microsoft, Dell, HP
• Positive Sentiment: Analysts and market coverage highlighted Arm as a key winner from Nvidia’s announcement, with the stock hitting a record high on expectations that Arm could gain share in the AI PC market. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Multiple reports noted that Arm shares surged in premarket and midday trading after Nvidia’s chip launch was seen as a major validation of Arm’s architecture in AI PCs. ARM Holdings Rockets 18%, Microsoft, Dell Rise on RTX Spark AI PC Launch
• Positive Sentiment: A separate report noted that investor excitement around Arm’s role in Nvidia’s PC effort was amplified by commentary calling the development “amazing” for Arm shareholders. ARM rises on Nvidia’s PC chip launch; Cramer says ‘amazing’ for Arm shareholders
• Neutral Sentiment: An Arm insider sold 4,200 shares in a transaction disclosed on May 28, but the sale was relatively small compared with the executive’s remaining holdings and appears less important than the Nvidia-related growth story. SEC Form 4 filing

Analyst Ratings Changes

A number of equities analysts have weighed in on ARM shares. TD Cowen lifted their price objective on ARM from $165.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Mizuho lifted their price objective on ARM from $360.00 to $425.00 and gave the company an “outperform” rating in a research note on Monday. JPMorgan Chase & Co. reduced their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Finally, Needham & Company LLC raised their target price on ARM from $200.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Twenty investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $226.92.

ARM Trading Up 15.7%

The company has a market capitalization of $431.95 billion, a price-to-earnings ratio of 486.73, a PEG ratio of 12.83 and a beta of 3.77. The company has a fifty day moving average of $199.27 and a 200-day moving average of $149.37.

ARM (NASDAQ:ARM) last posted its quarterly earnings data 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 company had revenue of $1.49 billion for the quarter. As a group, equities research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Transactions at ARM

In other ARM news, insider William Abbey sold 4,200 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $343.81, for a total value of $1,444,002.00. Following the transaction, the insider directly owned 27,129 shares of the company’s stock, valued at $9,327,221.49. This trade represents a 13.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Charlotte Claire Eaton sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $282.77, for a total transaction of $1,131,080.00. Following the completion of the transaction, the insider directly owned 7,805 shares in the company, valued at $2,207,019.85. This trade represents a 33.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 283,466 shares of company stock valued at $58,946,033.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Compound Planning Inc. lifted its stake in ARM by 4.6% in the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after purchasing an additional 69 shares in the last quarter. Rathbones Group PLC lifted its stake in ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock worth $1,493,000 after purchasing an additional 70 shares in the last quarter. Kovack Advisors Inc. lifted its stake in ARM by 2.0% in the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after purchasing an additional 72 shares in the last quarter. Murphy & Mullick Capital Management Corp lifted its stake in ARM by 9.1% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 926 shares of the company’s stock worth $135,000 after purchasing an additional 77 shares in the last quarter. Finally, Balboa Wealth Partners lifted its stake in ARM by 2.7% in the 3rd quarter. Balboa Wealth Partners now owns 3,108 shares of the company’s stock worth $440,000 after purchasing an additional 83 shares in the last quarter. 7.53% of the stock is 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.