ARM (NASDAQ:ARM) Stock Price Up 3.3% – Still a Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded up 3.3% during mid-day trading on Tuesday . The company traded as high as $361.95 and last traded at $354.75. Approximately 6,238,089 shares were traded during mid-day trading, a decline of 31% from the average session volume of 9,007,415 shares. The stock had previously closed at $343.58.

Analysts Set New Price Targets

Several brokerages have issued reports on ARM. Wells Fargo & Company boosted their target price on ARM from $255.00 to $410.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Royal Bank Of Canada boosted their price objective on ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Mizuho increased their target price on shares of ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. Susquehanna upped 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. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $150.00 price objective (up from $135.00) on shares of ARM in a report on Tuesday, April 7th. Nineteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $279.83.

ARM Trading Up 3.3%

The firm has a market cap of $378.90 billion, a PE ratio of 422.32, a price-to-earnings-growth ratio of 12.14 and a beta of 3.77. The stock has a fifty day simple moving average of $295.53 and a two-hundred day simple moving average of $184.78.

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

Insider Transactions at ARM

In other news, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares in the company, valued at $1,159,318.45. The trade was a 81.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the completion of the transaction, the chief financial officer directly owned 174,232 shares in the company, valued at approximately $39,470,517.28. The trade was a 15.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 248,205 shares of company stock worth $57,741,572.

Hedge Funds Weigh In On ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of ARM. Syntax Research Inc. purchased a new stake in shares of ARM during the 1st quarter valued at $30,000. Evelyn Partners Investment Management Services Ltd purchased a new position in ARM in the first quarter worth $30,000. FWL Investment Management LLC bought a new position in ARM in the second quarter valued at $34,000. Cassaday & Co Wealth Management LLC bought a new position in ARM in the first quarter valued at $40,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in ARM during the fourth quarter valued at about $30,000. Hedge funds and other institutional investors 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.