ARM (NASDAQ:ARM) Trading Up 5.7% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price rose 5.7% during mid-day trading on Wednesday . The company traded as high as $444.80 and last traded at $418.88. Approximately 11,508,664 shares were traded during mid-day trading, an increase of 31% from the average daily volume of 8,813,980 shares. The stock had previously closed at $396.34.

Wall Street Analyst Weigh In

ARM has been the topic of a number of research analyst reports. Susquehanna lifted their price target on shares of ARM from $170.00 to $210.00 and gave the company a “positive” rating in a research note on Thursday, April 16th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. The Goldman Sachs Group lifted their price target on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. TD Cowen lifted their price target on shares of ARM from $165.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Barclays lifted their price target on shares of ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Twenty investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $253.38.

ARM Stock Performance

The firm’s 50 day simple moving average is $254.04 and its 200-day simple moving average is $169.20. The company has a market cap of $447.40 billion, a price-to-earnings ratio of 498.67, a PEG ratio of 14.98 and a beta of 3.78.

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

Insider Buying and Selling at ARM

In other ARM news, insider William Abbey sold 6,566 shares of ARM stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the sale, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. The trade was a 24.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Laura Kathleen Bartels sold 11,306 shares of ARM stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the sale, the chief accounting officer directly owned 12,135 shares in the company, valued at approximately $4,765,414.50. This trade represents a 48.23% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 301,338 shares of company stock worth $66,030,158.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Syntax Research Inc. acquired a new position in shares of ARM during the 1st quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM during the 1st quarter valued at about $30,000. Mcguire Capital Advisors Inc. acquired a new position in shares of ARM during the 4th quarter valued at about $30,000. Navalign LLC acquired a new position in shares of ARM during the 4th quarter valued at about $33,000. Finally, FWL Investment Management LLC acquired a new position in shares of ARM during the 2nd quarter valued at about $34,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.