Daiwa Capital Markets Upgrades ARM (NASDAQ:ARM) to Outperform

Daiwa Capital Markets upgraded shares of ARM (NASDAQ:ARM) from a neutral rating to an outperform rating in a report released on Thursday morning, Marketbeat reports. The brokerage currently has $130.00 price objective on the stock.

Several other equities analysts also recently issued reports on ARM. The Goldman Sachs Group upped their price objective on shares of ARM from $110.00 to $143.00 and gave the company a buy rating in a research note on Tuesday, June 11th. HSBC downgraded ARM from a hold rating to a reduce rating in a research note on Monday, July 29th. Sanford C. Bernstein upgraded ARM from an underperform rating to a market perform rating and boosted their price objective for the company from $92.00 to $100.00 in a research note on Wednesday, August 7th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of ARM from $82.00 to $105.00 and gave the company a hold rating in a report on Thursday, August 1st. Finally, Hsbc Global Res upgraded shares of ARM to a moderate sell rating in a research report on Monday, July 29th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating, sixteen have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of Moderate Buy and an average price target of $121.56.

ARM Price Performance

Shares of NASDAQ ARM opened at $117.00 on Thursday. The company has a market cap of $122.60 billion and a price-to-earnings ratio of 120.63. The stock’s 50-day moving average is $153.07 and its two-hundred day moving average is $128.80. ARM has a 1-year low of $46.50 and a 1-year high of $188.75.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, July 31st. The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $939.00 million for the quarter, compared to the consensus estimate of $905.53 million. ARM had a net margin of 12.12% and a return on equity of 18.97%. The company’s quarterly revenue was up 39.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.24 EPS. Equities research analysts anticipate that ARM will post 0.82 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Jennison Associates LLC increased its stake in ARM by 15.7% during the 4th quarter. Jennison Associates LLC now owns 7,346,660 shares of the company’s stock worth $552,065,000 after buying an additional 994,551 shares during the period. Schroder Investment Management Group purchased a new position in ARM in the fourth quarter valued at about $480,194,000. Wellington Management Group LLP grew its stake in ARM by 56.4% during the 4th quarter. Wellington Management Group LLP now owns 4,468,720 shares of the company’s stock valued at $335,802,000 after purchasing an additional 1,611,926 shares in the last quarter. Robeco Schweiz AG increased its holdings in ARM by 220.3% during the 4th quarter. Robeco Schweiz AG now owns 2,130,000 shares of the company’s stock worth $160,059,000 after purchasing an additional 1,465,000 shares during the last quarter. Finally, Mubadala Investment Co PJSC acquired a new position in shares of ARM in the 4th quarter valued at approximately $150,437,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.