ARM (NASDAQ:ARM) Stock Price Up 8.3% – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) were up 8.3% during trading on Monday . The stock traded as high as $416.17 and last traded at $412.55. Approximately 13,904,382 shares traded hands during trading, an increase of 59% from the average daily volume of 8,756,665 shares. The stock had previously closed at $380.81.

Analyst Ratings Changes

Several equities analysts recently commented on ARM shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Sanford C. Bernstein started coverage on shares of ARM in a research report on Monday, May 18th. They set an “outperform” rating and a $300.00 price target for the company. Bank of America upped their price target on shares of ARM from $245.00 to $335.00 and gave the stock a “neutral” rating in a research report on Thursday. HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and upped their price target for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Twenty investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $239.00.

ARM Stock Up 8.3%

The company has a market capitalization of $440.64 billion, a PE ratio of 491.13, a P/E/G ratio of 13.83 and a beta of 3.77. The firm’s 50 day simple moving average is $243.82 and its 200-day simple moving average is $165.36.

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

Insiders Place Their Bets

In related news, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the sale, the insider directly owned 5,543 shares in the company, valued at $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 301,338 shares of company stock valued at $66,030,158.

Institutional Trading of ARM

Institutional investors have recently added to or reduced their stakes in the stock. Syntax Research Inc. acquired a new stake in ARM in the first quarter valued at $30,000. Evelyn Partners Investment Management Services Ltd acquired a new stake in ARM in the first quarter valued at $30,000. FWL Investment Management LLC acquired a new stake in ARM in the second quarter valued at $34,000. Cassaday & Co Wealth Management LLC acquired a new stake in ARM in the first quarter valued at $40,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in ARM in the fourth quarter valued at $30,000. 7.53% of the stock is owned by institutional investors and hedge funds.

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.