ARM (NASDAQ:ARM) Stock Jumps 2.5% – Here’s Why

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded up 2.5% during mid-day trading on Wednesday. The stock traded as high as $228.95 and last traded at $226.59. Approximately 3,228,613 shares were traded during mid-day trading, a decline of 57% from the average session volume of 7,543,818 shares. The stock had previously closed at $221.06.

Wall Street Analysts Forecast Growth

ARM has been the topic of several research analyst reports. Royal Bank Of Canada decreased 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. KeyCorp boosted their price objective on shares of ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. Bank of America reaffirmed a “neutral” rating and set a $335.00 price objective (up from $245.00) on shares of ARM in a research report on Thursday, July 30th. Jefferies Financial Group reiterated a “buy” rating and issued a $320.00 target price on shares of ARM in a research note on Monday, July 20th. Finally, Guggenheim reissued a “buy” rating and set a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. One equities research 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 issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Trading Up 2.5%

The firm has a market cap of $242.02 billion, a P/E ratio of 233.60, a price-to-earnings-growth ratio of 6.76 and a beta of 3.78. The company’s fifty day moving average price is $265.51 and its two-hundred day moving average price is $271.26.

ARM (NASDAQ:ARM) last announced its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. The business had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%. ARM’s revenue was up 22.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.35 EPS. On average, analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction 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 $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ARM. Crossmark Global Holdings Inc. increased its position in shares of ARM by 10.9% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 6,022 shares of the company’s stock valued at $1,744,000 after buying an additional 592 shares in the last quarter. Capstone Capital Management Ltd acquired a new stake in ARM during the 3rd quarter worth $1,252,000. LCM Capital Management Inc lifted its holdings in ARM by 10.2% during the third quarter. LCM Capital Management Inc now owns 1,380 shares of the company’s stock worth $400,000 after acquiring an additional 128 shares in the last quarter. Hyperion Asset Management Ltd lifted its holdings in ARM by 36.9% during the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock worth $210,662,000 after acquiring an additional 195,942 shares in the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in ARM by 19.5% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 8,800 shares of the company’s stock worth $2,549,000 after acquiring an additional 1,436 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

About ARM

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.