ARM (NASDAQ:ARM) Shares Up 4.4% – Should You Buy?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 4.4% on Thursday . The company traded as high as $295.57 and last traded at $286.68. Approximately 4,355,217 shares were traded during trading, a decline of 49% from the average session volume of 8,529,784 shares. The stock had previously closed at $274.58.

Wall Street Analyst Weigh In

ARM has been the topic of several research reports. Raymond James Financial reiterated an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Morgan Stanley lifted their target price on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Jefferies Financial Group reissued a “buy” rating and issued a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Wells Fargo & Company decreased their target price on shares of ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Finally, Mizuho upped their price target on shares of ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, June 8th. Eighteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Price Performance

The company has a market cap of $306.20 billion, a PE ratio of 295.55, a P/E/G ratio of 8.32 and a beta of 3.90. The company’s fifty day moving average price is $325.91 and its 200 day moving average price is $216.97.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the firm posted $0.35 earnings per share. The company’s quarterly revenue was up 22.4% compared to the same quarter last year. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction 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 trade represents a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the transaction, the insider directly owned 20,563 shares of the company’s stock, valued at $8,281,131.36. The trade was a 24.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 216,049 shares of company stock valued at $52,101,605.

Institutional Investors Weigh In On ARM

A number of hedge funds have recently bought and sold shares of the business. GoalFusion Wealth Management LLC purchased a new position in shares of ARM in the 2nd quarter worth $321,000. Redhawk Wealth Advisors Inc. purchased a new position in ARM in the second quarter worth about $375,000. Wealthcare Advisory Partners LLC bought a new stake in ARM during the second quarter worth approximately $326,000. First Bank & Trust purchased a new stake in ARM during the second quarter valued at approximately $274,000. Finally, Vertrix Wealth Management LLC bought a new stake in shares of ARM in the 2nd quarter valued at approximately $292,000. 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.