ARM (NASDAQ:ARM) Stock Price Up 5% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were up 5% during trading on Monday . The stock traded as high as $175.32 and last traded at $175.10. Approximately 8,449,018 shares were traded during mid-day trading, an increase of 25% from the average daily volume of 6,785,253 shares. The stock had previously closed at $166.73.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Susquehanna boosted their price objective on ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research note on Thursday. TD Cowen dropped their target price on shares of ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research note on Wednesday, January 21st. KeyCorp reaffirmed an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. Finally, Wells Fargo & Company boosted their target price on shares of ARM from $165.00 to $175.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 1st. Eighteen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $174.83.

ARM Trading Up 5.0%

The company has a market cap of $184.99 billion, a P/E ratio of 233.47, a price-to-earnings-growth ratio of 7.52 and a beta of 3.33. The firm’s 50 day moving average price is $134.93 and its 200-day moving average price is $134.81.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm’s quarterly revenue was up 26.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.39 EPS. Analysts predict that ARM Holdings PLC Sponsored ADR will post 0.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares of the company’s stock, valued at $46,894,829.05. The trade was a 7.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction dated 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 $25,921,129.22. This trade represents a 10.86% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 62,432 shares of company stock worth $9,784,330.

Hedge Funds Weigh In On ARM

Institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC grew its position in shares of ARM by 126.0% in the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after purchasing an additional 97 shares during the period. Grey Fox Wealth Advisors LLC bought a new stake in ARM in the 3rd quarter valued at $28,000. Mcguire Capital Advisors Inc. bought a new stake in ARM in the 4th quarter valued at $30,000. Navalign LLC bought a new stake in ARM in the 4th quarter valued at $33,000. Finally, FWL Investment Management LLC bought a new stake in ARM in the 2nd quarter valued at $34,000. 7.53% of the stock is currently 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.