ARM (NASDAQ:ARM) Upgraded by Sanford C. Bernstein to “Strong-Buy” Rating

Sanford C. Bernstein upgraded shares of ARM (NASDAQ:ARM) to a strong-buy rating in a research note released on Monday morning,Zacks.com reports.

Several other research analysts have also commented on ARM. KeyCorp reissued an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. Wells Fargo & Company raised their price objective on shares of ARM from $220.00 to $255.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Mizuho raised their price objective on shares of ARM from $230.00 to $255.00 and gave the company an “outperform” rating in a research note on Wednesday, May 6th. Guggenheim raised their price objective on shares of ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating in a research note on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $203.79.

ARM Price Performance

Shares of ARM opened at $215.12 on Monday. ARM has a 1-year low of $100.02 and a 1-year high of $239.50. The stock has a market cap of $227.28 billion, a PE ratio of 256.10, a P/E/G ratio of 7.60 and a beta of 3.40. The firm has a 50-day simple moving average of $166.81 and a two-hundred day simple moving average of $140.61.

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

Insider Buying and Selling

In related news, CFO Jason Child sold 21,280 shares of ARM 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 owned 174,706 shares in the company, valued at $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the transaction, the insider owned 51,125 shares of the company’s stock, valued at $10,824,696.25. This represents a 50.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 135,673 shares of company stock worth $24,616,433 over the last 90 days.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ARM. Capital Research Global Investors purchased a new position in ARM in the third quarter worth approximately $243,098,000. Northwestern Mutual Wealth Management Co. lifted its stake in ARM by 2,623.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares during the last quarter. Hyperion Asset Management Ltd purchased a new position in ARM in the third quarter worth approximately $202,980,000. Employees Provident Fund Board purchased a new position in ARM in the fourth quarter worth approximately $120,241,000. Finally, Arrowstreet Capital Limited Partnership lifted its stake in ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after acquiring an additional 872,644 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

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.