ARM (NASDAQ:ARM) Stock Price Up 2.5% – Here’s What Happened

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was up 2.5% during mid-day trading on Thursday . The company traded as high as $290.21 and last traded at $278.65. Approximately 4,783,597 shares changed hands during mid-day trading, a decline of 43% from the average session volume of 8,373,857 shares. The stock had previously closed at $271.87.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on ARM shares. Royal Bank Of Canada lowered their target price on ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. The Goldman Sachs Group boosted their price objective on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research report on Thursday, May 7th. Raymond James Financial restated an “outperform” rating on shares of ARM in a research note on Thursday, May 7th. Rosenblatt Securities dropped their target price on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Finally, Wells Fargo & Company cut their target price on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, ARM currently has an average rating of “Moderate Buy” and an average price target of $285.33.

ARM Stock Up 2.5%

The firm has a market capitalization of $297.62 billion, a price-to-earnings ratio of 287.27, a P/E/G ratio of 7.97 and a beta of 3.90. The company has a 50-day moving average price of $315.23 and a 200-day moving average price of $222.79.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm’s quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.35 EPS. As a group, analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Activity at ARM

In related news, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares in the company, valued at $39,470,517.28. The trade was a 15.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charlotte Claire Eaton sold 7,805 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the sale, the insider directly owned 5,000 shares of the company’s stock, valued at approximately $1,450,050. This represents a 60.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 164,088 shares of company stock valued at $41,099,903.

Hedge Funds Weigh In On ARM

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

About ARM

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.