ARM (NASDAQ:ARM) Stock Jumps 6.2% – Here’s Why

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 6.2% on Monday. The company traded as high as $225.67 and last traded at $223.35. 4,645,221 shares were traded during trading, a decline of 38% from the average daily volume of 7,498,200 shares. The stock had previously closed at $210.33.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. HSBC downgraded ARM from a “buy” rating to a “hold” rating and raised their price target for the stock from $255.00 to $315.00 in a report on Tuesday, July 14th. TD Cowen decreased their target price on shares of ARM from $475.00 to $350.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Needham & Company LLC reissued a “buy” rating and set a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Royal Bank Of Canada dropped their price target on shares of ARM from $475.00 to $340.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Finally, Piper Sandler started coverage on shares of ARM in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $320.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Trading Up 6.2%

The firm has a 50-day moving average price of $261.86 and a 200-day moving average price of $272.67. The company has a market capitalization of $238.56 billion, a price-to-earnings ratio of 230.26, a PEG ratio of 6.24 and a beta of 3.78.

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

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer directly owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. This represents a 6.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several large investors have recently made changes to their positions in ARM. QRG Capital Management Inc. grew its position in ARM by 32.1% in the second quarter. QRG Capital Management Inc. now owns 9,591 shares of the company’s stock worth $3,401,000 after buying an additional 2,330 shares during the last quarter. Envestnet Portfolio Solutions Inc. acquired a new stake in shares of ARM during the 2nd quarter valued at $2,755,000. BlueCrest Capital Management Ltd acquired a new stake in shares of ARM during the 2nd quarter valued at $1,359,000. Public Employees Retirement System of Ohio bought a new stake in shares of ARM during the 2nd quarter worth $38,280,000. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of ARM by 146.3% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 90,773 shares of the company’s stock worth $13,732,000 after acquiring an additional 53,914 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.