ARM (NASDAQ:ARM) Sets New 52-Week High – Time to Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) reached a new 52-week high on Thursday . The stock traded as high as $259.44 and last traded at $256.73, with a volume of 18038893 shares. The stock had previously closed at $223.15.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Bernstein initiated coverage on ARM with an outperform rating and a $300 price target, highlighting upside tied to Arm’s AI infrastructure and CPU growth potential.
• Positive Sentiment: TD Cowen also turned more constructive, raising its price target to $265 from $165 and reiterating a Buy, citing a stronger AGI CPU growth narrative.
• Positive Sentiment: Media coverage pointed to renewed enthusiasm for Arm as a key beneficiary of AI-driven semiconductor demand, helping extend the stock’s strong upward trend.
• Neutral Sentiment: Several insider sales were disclosed, but they were described as pre-arranged Rule 10b5-1 transactions tied to equity compensation tax withholding, which makes them less meaningful as a business signal.
• Negative Sentiment: Yahoo Finance reported that ARM fell on news of a possible U.S. antitrust probe, raising concerns about future scrutiny of Arm’s licensing model and creating some regulatory overhang. Article: Arm Falls on Reported US Antitrust Probe

Analyst Ratings Changes

Several equities analysts recently weighed in on ARM shares. Rosenblatt Securities boosted their price objective on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Benchmark reissued a “hold” rating on shares of ARM in a research report on Thursday, February 5th. TD Cowen boosted their price objective on ARM from $165.00 to $265.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Evercore cut their price target on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a report on Thursday, February 5th. Finally, UBS Group cut their price target on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a report on Thursday, February 5th. Twenty analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $203.79.

ARM Stock Performance

The firm has a market capitalization of $271.24 billion, a P/E ratio of 305.63, a price-to-earnings-growth ratio of 8.10 and a beta of 3.40. The stock has a 50-day moving average of $171.77 and a 200 day moving average of $141.63.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The business had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. On average, equities analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the sale, the insider owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. This trade represents a 81.45% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the firm’s stock in a transaction on 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 $10,824,696.25. The trade was a 50.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 168,589 shares of company stock worth $31,508,607 over the last three months.

Institutional Trading of ARM

A number of institutional investors have recently modified their holdings of the company. Amundi increased its position in shares of ARM by 24.8% in the first quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after acquiring an additional 2,345 shares during the last quarter. Empowered Funds LLC increased its position in shares of ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after acquiring an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. increased its position in shares of ARM by 9.0% in the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after acquiring an additional 200 shares during the last quarter. Bank of Nova Scotia acquired a new stake in shares of ARM in the second quarter valued at about $556,000. Finally, State Street Corp increased its position in shares of ARM by 14.7% in the second quarter. State Street Corp now owns 441,445 shares of the company’s stock valued at $71,399,000 after acquiring an additional 56,656 shares during the last quarter. 7.53% of the stock is currently owned by 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.