ARM (NASDAQ:ARM) Stock Price Up 10.8% – Still a Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 10.8% on Thursday . The stock traded as high as $349.42 and last traded at $335.27. Approximately 14,174,448 shares changed hands during 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 continued enthusiasm around AI infrastructure demand have boosted sentiment, with ARM recently hitting new highs and drawing momentum buyers. Can Arm stock climb higher after fresh AI-driven analyst upgrades?
• Positive Sentiment: ARM remains a key beneficiary of AI chip demand, and comparison pieces highlight its strong positioning versus peers in semiconductor design. ARM vs. SNPS: Which AI Chip Design Stock Should Investors Buy?
• Neutral Sentiment: A recent short-interest update showed no meaningful change in positioning, so it does not appear to be a major near-term driver for the stock.
• Negative Sentiment: At least one recent valuation note argues ARM’s upside may be limited after a sharp rally, with a price target suggesting only modest near-term appreciation from recent levels. Stock Price Prediction: Arm Holdings Has Limited Upside Despite 177% Rally

Wall Street Analysts Forecast Growth

ARM has been the topic of several research reports. Evercore dropped their price target on ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research report on Thursday, February 5th. Mizuho lifted their price target on ARM from $230.00 to $255.00 and gave the company an “outperform” rating in a research report on Wednesday, May 6th. Barclays lifted their price target on ARM from $200.00 to $250.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Susquehanna lifted their price objective on ARM from $170.00 to $210.00 and gave the company a “positive” rating in a research note on Thursday, April 16th. Finally, Guggenheim lifted their price objective on ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, ARM has an average rating of “Moderate Buy” and an average price target of $208.79.

ARM Price Performance

The stock has a 50 day simple moving average of $199.27 and a 200-day simple moving average of $149.41. The firm has a market cap of $373.25 billion, a PE ratio of 420.58, a PEG ratio of 12.18 and a beta of 3.40.

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

Insider Transactions at ARM

In other news, insider Spencer Collins sold 51,961 shares of the business’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the transaction, the insider owned 51,125 shares in the company, valued at $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares of the company’s stock, valued at $46,894,829.05. This represents a 7.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 279,266 shares of company stock valued at $57,502,031.

Institutional Trading of ARM

A number of hedge funds have recently bought and sold shares of ARM. Amundi increased its position in ARM by 24.8% during the first quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after acquiring an additional 2,345 shares during the last quarter. Empowered Funds LLC increased its position in ARM by 28.8% during the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after acquiring an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. increased its position in ARM by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after acquiring an additional 200 shares during the last quarter. Bank of Nova Scotia purchased a new stake in ARM during the second quarter valued at $556,000. Finally, State Street Corp increased its position in ARM by 14.7% during the second quarter. State Street Corp now owns 441,445 shares of the company’s stock valued at $71,399,000 after acquiring an additional 56,656 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

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.