ARM (NASDAQ:ARM) Trading 1.2% Higher – Should You Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price was up 1.2% on Tuesday . The company traded as high as $247.99 and last traded at $241.56. 3,477,185 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 8,145,433 shares. The stock had previously closed at $238.78.

Wall Street Analyst Weigh In

ARM has been the subject of several research reports. The Goldman Sachs Group increased their target price on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. Rosenblatt Securities decreased their price objective on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Morgan Stanley raised their target price on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a report on Thursday, May 7th. Finally, Royal Bank Of Canada cut their price target on shares of ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a research note on Thursday, July 30th. Eighteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $305.12.

ARM Stock Down 0.2%

The stock’s 50-day simple moving average is $293.07 and its 200 day simple moving average is $233.08. The stock has a market capitalization of $267.66 billion, a price-to-earnings ratio of 258.41, a price-to-earnings-growth ratio of 7.16 and a beta of 3.90.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the firm posted $0.35 EPS. The business’s revenue was up 22.4% on a year-over-year basis. As a group, equities research analysts anticipate 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 company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the transaction, the chief accounting officer owned 12,135 shares of the company’s stock, valued at $4,765,414.50. This represents a 48.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the transaction, the insider owned 20,563 shares in the company, valued at approximately $8,281,131.36. This represents a 24.20% decrease in their position. The disclosure for this sale is available in the SEC filing.

Hedge Funds Weigh In On ARM

Large investors have recently bought and sold shares of the business. Syntax Research Inc. acquired a new position in shares of ARM in the 1st quarter valued at $30,000. Evelyn Partners Investment Management Services Ltd bought a new stake in shares of ARM in the 1st quarter valued at about $30,000. Allied Private Wealth LLC acquired a new stake in shares of ARM in the 2nd quarter valued at approximately $71,000. FWL Investment Management LLC acquired a new stake in shares of ARM in the 2nd quarter valued at approximately $34,000. Finally, Cassaday & Co Wealth Management LLC bought a new stake in ARM in the first quarter valued at approximately $40,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

About ARM

Arm Holdings (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.