ARM (NASDAQ:ARM) Trading 6.4% Higher – What’s Next?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shot up 6.4% on Wednesday . The company traded as high as $222.47 and last traded at $221.21. 8,426,560 shares traded hands during trading, an increase of 8% from the average session volume of 7,773,296 shares. The stock had previously closed at $207.92.

Analyst Upgrades and Downgrades

ARM has been the subject of several analyst reports. Needham & Company LLC raised their target price on shares of ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Jefferies Financial Group reiterated a “buy” rating on shares of ARM in a report on Thursday, May 7th. Susquehanna increased their price objective on shares of ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research report on Thursday, April 16th. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Finally, Benchmark reaffirmed a “hold” rating on shares of ARM in a research note on Thursday, February 5th. Nineteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $199.61.

ARM Trading Up 6.4%

The company’s 50 day moving average is $159.14 and its 200 day moving average is $139.31. The company has a market cap of $233.80 billion, a PE ratio of 263.44, a P/E/G ratio of 7.33 and a beta of 3.40.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, April 1st. The company reported $0.60 EPS 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 for the quarter. Analysts expect that ARM Holdings PLC Sponsored ADR will post 1.18 EPS for the current year.

Insiders Place Their Bets

In other news, insider Spencer Collins sold 51,961 shares of the stock in a transaction 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 transaction, the insider owned 51,125 shares of the company’s stock, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jason Child sold 21,280 shares of the firm’s stock in a transaction 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 transaction, the chief financial officer owned 174,706 shares in the company, valued at approximately $25,921,129.22. This represents a 10.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 135,673 shares of company stock worth $24,616,433 in the last ninety days.

Institutional Trading of ARM

A number of hedge funds have recently added to or reduced their stakes in ARM. Capital Research Global Investors bought a new stake in shares of ARM in the 3rd quarter valued at about $243,098,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of ARM by 2,623.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after purchasing an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd purchased a new position in ARM during the third quarter valued at approximately $202,980,000. Employees Provident Fund Board purchased a new position in ARM during the fourth quarter valued at approximately $120,241,000. Finally, SG Americas Securities LLC raised its stake in ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after buying an additional 705,459 shares in the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.