ARM (NASDAQ:ARM) Stock Jumps 2.5% – Should You Buy?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded up 2.5% on Wednesday. The company traded as high as $228.95 and last traded at $226.59. 3,228,613 shares changed hands during trading, a decline of 57% from the average daily volume of 7,543,818 shares. The stock had previously closed at $221.06.

Analyst Ratings Changes

Several equities research analysts recently issued reports on ARM shares. Rosenblatt Securities reduced their price objective on ARM from $270.00 to $250.00 and set a “buy” rating for the company in a research note on Friday, July 31st. Wells Fargo & Company lowered their target price on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. KeyCorp upped their target price on ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. Piper Sandler began coverage on shares of ARM in a research report on Wednesday, September 9th. They issued an “overweight” rating and a $320.00 price target for the company. Finally, Jefferies Financial Group restated a “buy” rating and set a $320.00 price target on shares of ARM in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Price Performance

The business has a 50 day simple moving average of $263.24 and a 200 day simple moving average of $272.23. The stock has a market cap of $225.82 billion, a PE ratio of 217.97, a P/E/G ratio of 6.72 and a beta of 3.78.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%. The business’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period last year, the business earned $0.35 EPS. As a group, sell-side analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Several large investors have recently made changes to their positions in the stock. QRG Capital Management Inc. boosted its position in ARM by 32.1% during the second quarter. QRG Capital Management Inc. now owns 9,591 shares of the company’s stock worth $3,401,000 after purchasing an additional 2,330 shares during the period. Envestnet Portfolio Solutions Inc. acquired a new position in ARM during the second quarter valued at approximately $2,755,000. BlueCrest Capital Management Ltd bought a new position in shares of ARM in the second quarter valued at approximately $1,359,000. Public Employees Retirement System of Ohio bought a new position in shares of ARM in the second quarter valued at approximately $38,280,000. Finally, Swedbank AB lifted its stake in shares of ARM by 15.7% in the first quarter. Swedbank AB now owns 421,000 shares of the company’s stock worth $63,689,000 after buying an additional 57,000 shares during the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.