ARM (NASDAQ:ARM) Shares Climb 2.8% – Time to Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded up 2.8% during trading on Thursday. The company traded as high as $245.87 and last traded at $244.79. Approximately 6,522,704 shares were traded during trading, a decline of 14% from the average session volume of 7,610,085 shares. The stock had previously closed at $238.01.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Licensing momentum remains solid: Arm’s annualized contract value rose 13% to $1.73 billion, supporting the case for continued growth ahead of fiscal second-quarter earnings. The update is particularly important because licensing revenue provides an indicator of future royalty opportunities. Can ARM’s 13% Contract Value Growth Sustain Momentum in Q2?
• Positive Sentiment: Windows on Arm ecosystem expands: Microsoft is adding native Python support to Windows on Arm PCs, potentially improving developer support and application compatibility for devices using Arm-based processors. Microsoft Brings Native Python Support to Windows on Arm PCs
• Positive Sentiment: Limited immediate financial impact from Qualcomm verdict: Although Qualcomm prevailed on a license-breach claim, the damages award was only $2. That result limits the near-term monetary risk to Arm and leaves both companies able to characterize the outcome favorably. Qualcomm’s lengthy legal battle with Arm nets it $2 in damages
• Neutral Sentiment: Investor focus remains on growth versus valuation: Comparisons with AMD highlight Arm’s strong position in smartphones—its architecture powers more than 99% of smartphones—but also show that Arm trades at a far richer growth-based valuation. Advanced Micro Devices vs. Arm
• Negative Sentiment: Legal uncertainty persists: The Qualcomm ruling found that Arm breached its licensing agreement, preserving questions about licensing rights, future litigation and the broader commercial relationship despite the minimal damages. Arm-Qualcomm legal fight ends in limited verdict, larger stakes remain
• Negative Sentiment: High valuation and interest-rate sensitivity remain headwinds: Arm’s earnings are valued on substantial future growth, making the stock vulnerable when interest rates rise or inflation data pressures markets. Its premium forward earnings multiple also leaves less room for execution disappointments. Why Arm Holdings Stock Was Falling Today

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Royal Bank Of Canada dropped their price target on shares of ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Susquehanna raised their price objective on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Raymond James Financial restated an “outperform” rating and set a $166.00 price objective on shares of ARM in a research report on Tuesday, August 25th. TD Cowen lowered their target price on shares of ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Finally, Morgan Stanley increased their price target on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Price Performance

The firm’s 50-day moving average price is $269.20 and its 200-day moving average price is $268.91. The stock has a market cap of $261.46 billion, a P/E ratio of 252.36, a PEG ratio of 7.57 and a beta of 3.78.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. ARM’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.35 earnings per share. Sell-side analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the sale, the chief financial officer directly owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in the company. Hyperion Asset Management Ltd raised its holdings in shares of ARM by 28.0% during the 4th quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after acquiring an additional 401,594 shares in the last quarter. SG Americas Securities LLC increased its position in ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in ARM by 1,203.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares in the last quarter. Employees Provident Fund Board purchased a new stake in ARM during the fourth quarter valued at $120,241,000. Finally, Janus Henderson Group PLC bought a new position in ARM during the first quarter valued at $116,112,000. Hedge funds and other 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 intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.