ARM (NASDAQ:ARM) Shares Up 1.1% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price rose 1.1% during trading on Wednesday . The company traded as high as $280.16 and last traded at $271.87. Approximately 3,341,352 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 8,395,000 shares. The stock had previously closed at $268.93.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ARM. The Goldman Sachs Group boosted their target price on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. Raymond James Financial restated an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Needham & Company LLC reaffirmed a “buy” rating and issued a $255.00 price target on shares of ARM in a report on Thursday, July 30th. KeyCorp boosted their price objective on shares of ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Finally, UBS Group dropped their price objective on shares of ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, ARM has an average rating of “Moderate Buy” and a consensus target price of $285.33.

ARM Stock Performance

The stock has a market capitalization of $295.37 billion, a P/E ratio of 285.57, a P/E/G ratio of 8.06 and a beta of 3.90. The stock has a 50 day moving average of $312.94 and a 200 day moving average of $223.93.

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

Insider Activity

In related news, insider William Abbey sold 6,566 shares of ARM stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the sale, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. This trade represents a 24.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Jason Child sold 31,920 shares of ARM stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the completion of the sale, the chief financial officer owned 174,232 shares in the company, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 157,088 shares of company stock worth $39,612,053 in the last 90 days.

Hedge Funds Weigh In On ARM

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Syntax Research Inc. bought a new stake in shares of ARM during the first quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd bought a new position in ARM in the 1st quarter valued at about $30,000. Mcguire Capital Advisors Inc. bought a new position in ARM in the 4th quarter valued at about $30,000. Navalign LLC acquired a new position in ARM during the 4th quarter valued at about $33,000. Finally, FWL Investment Management LLC bought a new stake in shares of ARM during the 2nd quarter worth about $34,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.