ARM (NASDAQ:ARM) Trading Up 17.4% – Still a Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded up 17.4% during trading on Tuesday . The company traded as high as $283.27 and last traded at $280.56. Approximately 9,685,416 shares were traded during mid-day trading, an increase of 13% from the average session volume of 8,586,719 shares. The stock had previously closed at $239.06.

Analysts Set New Price Targets

A number of analysts have issued reports on ARM shares. Morgan Stanley lifted their target price on shares of ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Royal Bank Of Canada cut their price target on shares of ARM from $475.00 to $340.00 and set an “outperform” rating on the stock in a report on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a report on Thursday, July 30th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $255.00 price objective on shares of ARM in a report on Thursday, July 30th. Eighteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $285.33.

ARM Price Performance

The firm has a fifty day simple moving average of $325.91 and a 200 day simple moving average of $216.97. The company has a market cap of $306.20 billion, a price-to-earnings ratio of 295.55, a P/E/G ratio of 8.32 and a beta of 3.90.

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

Insider Activity at ARM

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the sale, the insider directly owned 51,125 shares in the company, valued at approximately $10,824,696.25. This trade represents a 50.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 216,049 shares of company stock valued at $52,101,605.

Institutional Inflows and Outflows

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