ARM (NASDAQ:ARM) Stock Price Up 12.1% – Here’s What Happened

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shot up 12.1% on Wednesday. The stock traded as high as $207.44 and last traded at $203.36. 6,709,294 shares were traded during trading, a decline of 10% from the average session volume of 7,455,411 shares. The stock had previously closed at $181.49.

More ARM News

These are some of the ARM news items that stood out recently:

• Positive Sentiment: Arm introduced Cortex-M42 processors, expanding its product portfolio; the report did not specify expected financial contributions. Arm Expands Its Portfolio with New Arm Cortex-M42 Processors
• Neutral Sentiment: Arm’s latest quarter showed strong fundamentals—revenue rose 27% to a record $1.44 billion and adjusted EPS topped estimates—but shares fell sharply after the results, suggesting expectations and concerns about growth weighed on sentiment. ARM Just Dropped 13% After Earnings. Is It Time to Sell, or Load Up?
• Negative Sentiment: CEO Rene Haas warned that resistance to U.S. AI data-center projects could push investment and jobs overseas, potentially slowing domestic infrastructure growth relevant to Arm’s opportunity. Arm CEO Warns US AI Data Center Pushback Could Send Jobs Abroad

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ARM. Guggenheim restated a “buy” rating and issued a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Bank of America reiterated a “neutral” rating and issued a $335.00 price target (up from $245.00) on shares of ARM in a research note on Thursday, July 30th. Needham & Company LLC reissued a “buy” rating and issued a $255.00 price objective on shares of ARM in a report on Thursday, November 5th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Thursday, October 15th. Finally, Susquehanna increased their target price on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Nineteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $291.72.

ARM Price Performance

The stock’s fifty day simple moving average is $250.52 and its two-hundred day simple moving average is $230.60. The company has a market capitalization of $217.20 billion, a price-to-earnings ratio of 233.75, a PEG ratio of 5.09 and a beta of 3.93.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.48 by $0.04. ARM had a net margin of 17.13% and a return on equity of 11.57%. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the previous year, the business posted $0.39 EPS. The company’s quarterly revenue was up 27.1% on a year-over-year basis. On average, sell-side analysts predict that Arm Holdings PLC Sponsored ADR will post 1.17 EPS for the current year.

Insider Transactions at ARM

In other ARM news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Advisors Asset Management Inc. bought a new position in shares of ARM during the third quarter worth about $9,057,000. Edmond DE Rothschild Holding S.A. lifted its position in ARM by 22.6% in the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 7,751 shares of the company’s stock valued at $2,245,000 after purchasing an additional 1,428 shares during the last quarter. Wilkinson Global Asset Management LLC bought a new stake in ARM in the 3rd quarter valued at about $411,000. USS Investment Management Ltd lifted its position in ARM by 2.0% in the 3rd quarter. USS Investment Management Ltd now owns 65,359 shares of the company’s stock valued at $18,932,000 after purchasing an additional 1,276 shares during the last quarter. Finally, Ieq Capital LLC lifted its position in ARM by 16.5% in the 3rd quarter. Ieq Capital LLC now owns 2,945 shares of the company’s stock valued at $853,000 after purchasing an additional 418 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.