ARM (NASDAQ:ARM) Shares Up 1.2% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price shot up 1.2% during mid-day trading on Tuesday . The company traded as high as $253.16 and last traded at $241.83. 3,747,645 shares were traded during trading, a decline of 52% from the average daily volume of 7,811,087 shares. The stock had previously closed at $239.01.

Wall Street Analyst Weigh In

ARM has been the subject of several analyst reports. Raymond James Financial reiterated an “outperform” rating on shares of ARM in a research report on Tuesday, August 25th. Piper Sandler began coverage on shares of ARM in a report on Wednesday, September 9th. They issued an “overweight” rating and a $320.00 price objective on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price for the company in a report on Thursday, July 30th. Finally, Susquehanna upped their target price on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $305.72.

ARM Stock Performance

The company has a market capitalization of $260.59 billion, a price-to-earnings ratio of 251.53, a price-to-earnings-growth ratio of 7.17 and a beta of 3.89. The company has a 50-day moving average price of $261.88 and a 200-day moving average price of $245.97.

ARM (NASDAQ:ARM) last announced 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 net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the company posted $0.35 EPS. ARM’s revenue for the quarter was up 22.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total transaction of $2,655,432.00. Following the transaction, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at $41,831,224.56. This trade represents a 5.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Hedge funds have recently added to or reduced their stakes in the business. IKE Capital LLC grew its stake in ARM by 88.7% in the second quarter. IKE Capital LLC now owns 5,331 shares of the company’s stock valued at $1,890,000 after acquiring an additional 2,506 shares during the period. Capstone Financial Advisors Inc. acquired a new stake in shares of ARM during the second quarter worth about $308,000. MCF Advisors LLC lifted its holdings in shares of ARM by 11.7% during the 2nd quarter. MCF Advisors LLC now owns 764 shares of the company’s stock valued at $271,000 after purchasing an additional 80 shares in the last quarter. BlueCrest Capital Management Ltd bought a new position in shares of ARM during the 2nd quarter valued at about $1,359,000. Finally, NorthRock Partners LLC acquired a new position in shares of ARM in the 2nd quarter valued at approximately $649,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.