ARM (NASDAQ:ARM) Trading Up 10.5% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 10.5% on Tuesday . The company traded as high as $151.59 and last traded at $151.28. Approximately 10,108,256 shares were traded during trading, an increase of 46% from the average daily volume of 6,900,517 shares. The stock had previously closed at $136.96.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ARM. JPMorgan Chase & Co. cut their target price on ARM from $180.00 to $145.00 and set an “overweight” rating on the stock in a research report on Thursday, February 5th. Wells Fargo & Company boosted their target price on shares of ARM from $150.00 to $165.00 and gave the stock an “overweight” rating in a research report on Wednesday, March 25th. Needham & Company LLC upgraded shares of ARM from a “hold” rating to a “buy” rating and set a $200.00 target price on the stock in a research note on Thursday, March 26th. UBS Group decreased their price target on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Wednesday, January 21st. Nineteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $168.17.

ARM Price Performance

The stock’s fifty day simple moving average is $123.10 and its two-hundred day simple moving average is $134.04. The company has a market capitalization of $159.83 billion, a price-to-earnings ratio of 201.71, a PEG ratio of 9.10 and a beta of 4.10.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company’s revenue for the quarter was up 26.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.39 EPS. On average, sell-side analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Insider Buying and Selling

In related news, CEO Rene A. Haas sold 7,986 shares of the business’s stock in a transaction that occurred on Thursday, March 26th. The stock was sold at an average price of $160.86, for a total transaction of $1,284,627.96. Following the completion of the transaction, the chief executive officer owned 282,979 shares in the company, valued at $45,520,001.94. The trade was a 2.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Jason Child sold 21,280 shares of the company’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total value of $3,157,313.60. Following the transaction, the chief financial officer owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 53,133 shares of company stock worth $8,288,586 over the last quarter.

Hedge Funds Weigh In On ARM

Several institutional investors have recently modified their holdings of ARM. Pacific Heights Asset Management LLC raised its holdings in shares of ARM by 32.1% during the third quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock valued at $26,176,000 after buying an additional 45,000 shares during the last quarter. Orion Porfolio Solutions LLC bought a new position in ARM in the 2nd quarter worth approximately $6,277,000. Voya Investment Management LLC grew its holdings in ARM by 15.5% in the 3rd quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock worth $28,644,000 after buying an additional 27,228 shares in the last quarter. Stanley Laman Group Ltd. acquired a new stake in ARM in the 3rd quarter valued at approximately $6,219,000. Finally, Lansdowne Partners UK LLP bought a new stake in ARM during the 3rd quarter valued at $8,486,000. 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.