ARM (NASDAQ:ARM) Stock Price Up 10.8% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price rose 10.8% on Thursday . The company traded as high as $349.42 and last traded at $335.27. Approximately 14,174,448 shares changed hands during mid-day trading, an increase of 71% from the average daily volume of 8,269,173 shares. The stock had previously closed at $302.71.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Fresh analyst upgrades and upbeat commentary around AI infrastructure demand are fueling bullish momentum in ARM, with the stock hitting new all-time highs. Can Arm stock climb higher after fresh AI-driven analyst upgrades?
• Positive Sentiment: Coverage highlighting ARM’s AI data-center opportunity and its AGI CPU platform reinforces the view that the company could be a major long-term winner from AI buildout trends. ARM Targets the AI Data Center Opportunity With New AGI CPU Push
• Positive Sentiment: Broker commentary comparing ARM favorably within the AI chip-design space is keeping investor attention on the company’s growth potential versus peers like Synopsys. ARM vs. SNPS: Which AI Chip Design Stock Should Investors Buy?
• Neutral Sentiment: Recent insider selling by William Abbey may be noted by traders, but it was a relatively small stake reduction and has not changed the company’s growth narrative. SEC insider filing
• Neutral Sentiment: Valuation concerns are starting to surface after ARM’s sharp run-up, which could temper enthusiasm if investors decide the shares have gotten ahead of fundamentals. Arm Holdings (ARM) Valuation Check After Strong Recent Share Price Momentum
• Negative Sentiment: A reported U.S. antitrust probe into ARM’s chip licensing practices remains a potential overhang, even though it has not yet derailed the stock’s recent advance. Arm Holdings plc (ARM) to Face US Antitrust Probe over Chip Tech, Bloomberg News Reports

Analyst Ratings Changes

ARM has been the subject of a number of recent analyst reports. UBS Group lowered their price objective on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. JPMorgan Chase & Co. lowered their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. Royal Bank Of Canada raised their price objective on ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Finally, Wells Fargo & Company lifted their price target on ARM from $220.00 to $255.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Twenty research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, ARM has a consensus rating of “Moderate Buy” and a consensus target price of $208.79.

ARM Stock Performance

The stock has a 50 day simple moving average of $190.61 and a two-hundred day simple moving average of $146.68. The firm has a market cap of $354.22 billion, a PE ratio of 399.13, a price-to-earnings-growth ratio of 11.67 and a beta of 3.40.

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

Insider Transactions at ARM

In other ARM news, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the sale, the chief executive officer directly owned 290,965 shares in the company, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This trade represents a 15.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 279,266 shares of company stock worth $57,502,031 over the last quarter.

Institutional Investors Weigh In On ARM

Several large investors have recently bought and sold shares of ARM. Capital Research Global Investors purchased a new stake in ARM during the 3rd quarter worth approximately $243,098,000. Northwestern Mutual Wealth Management Co. increased its stake in ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after buying an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd purchased a new stake in ARM during the 3rd quarter worth approximately $202,980,000. Employees Provident Fund Board purchased a new stake in ARM during the 4th quarter worth approximately $120,241,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after purchasing an additional 872,644 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.