ARM (NASDAQ:ARM) Stock Price Up 16.2% – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 16.2% during mid-day trading on Thursday . The company traded as high as $298.70 and last traded at $298.23. Approximately 21,535,870 shares changed hands during trading, an increase of 166% from the average daily volume of 8,108,127 shares. The stock had previously closed at $256.73.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Analysts said Nvidia’s bullish comments on Arm-based Vera CPUs support ARM’s growth narrative, with Jefferies reiterating a Buy rating and a $290 price target. Nvidia CPU comments read positively for this chip stock: analyst
• Positive Sentiment: Bernstein initiated coverage with an Outperform rating and a $300 target, highlighting Arm’s potential as AI and custom chip demand expands. Is Arm Holdings (ARM) the Best European Growth Stock to Buy?
• Positive Sentiment: Market commentary continues to frame ARM as a momentum name tied to the AI and CPU renaissance, with investors bidding the shares to fresh highs on expectations for strong profit growth. Arm Holdings (ARM) Hits All-Time High as Profits Seen Rocketing 5x
• Neutral Sentiment: Several insider sales were disclosed this week, including transactions by Charlotte Claire Eaton, CFO Jason Child, William Abbey, and Spencer Collins; most were pre-arranged or routine, but they can still raise valuation caution. SEC filing for insider sales
• Neutral Sentiment: Some recent market commentary says ARM remains a high-momentum stock and a proxy for the AI buildout, which supports the rally but also suggests expectations are elevated. Why Arm Holdings Stock Surged to an All-Time High Today

Analysts Set New Price Targets

Several research firms have recently weighed in on ARM. Evercore reduced their price objective on ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, February 5th. Needham & Company LLC raised their price target on shares of ARM from $200.00 to $255.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Guggenheim lifted their price target on shares of ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Finally, HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and raised their target price for the company from $90.00 to $205.00 in a research note on Friday, March 20th. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $208.79.

ARM Stock Performance

The stock has a fifty day simple moving average of $179.05 and a two-hundred day simple moving average of $143.68. The stock has a market cap of $323.83 billion, a PE ratio of 364.89, a PEG ratio of 10.83 and a beta of 3.40.

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

Insider Activity

In other ARM news, insider Charlotte Claire Eaton sold 4,000 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $282.77, for a total value of $1,131,080.00. Following the transaction, the insider owned 7,805 shares in the company, valued at $2,207,019.85. The trade was a 33.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the company’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. The trade was a 81.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 276,966 shares of company stock worth $56,798,645 over the last three months.

Institutional Investors Weigh In On ARM

Several hedge funds and other institutional investors have recently bought and sold shares of ARM. Morgan Stanley raised its holdings in shares of ARM by 1.2% during the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after purchasing an additional 45,314 shares during the period. Invesco Ltd. lifted its position in shares of ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after buying an additional 654,727 shares during the last quarter. Coatue Management LLC boosted its holdings in shares of ARM by 1.8% in the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after buying an additional 40,174 shares during the period. Wellington Management Group LLP grew its position in shares of ARM by 41.6% during the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after buying an additional 631,576 shares during the last quarter. Finally, Schroder Investment Management Group grew its position in shares of ARM by 11.0% during the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after buying an additional 187,035 shares during the last quarter. 7.53% of the stock is currently 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.