ARM (NASDAQ:ARM) Shares Up 2.2% – Still a Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price was up 2.2% on Monday . The stock traded as high as $338.24 and last traded at $322.24. 5,266,892 shares were traded during trading, a decline of 41% from the average daily volume of 8,934,582 shares. The stock had previously closed at $315.28.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. New Street Research lowered ARM from a “buy” rating to a “neutral” rating in a research report on Thursday, June 18th. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Wells Fargo & Company increased 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. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Finally, Bank of America boosted their price target on ARM from $335.00 to $460.00 and gave the stock a “neutral” rating in a research report on Tuesday, June 23rd. Nineteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and an average price target of $279.83.

ARM Trading Up 2.2%

The business’s 50-day simple moving average is $307.70 and its two-hundred day simple moving average is $190.34. The company has a market capitalization of $344.18 billion, a PE ratio of 383.62, a PEG ratio of 11.45 and a beta of 3.76.

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 return on equity of 12.43% and a net margin of 18.37%.The business had revenue of $1.49 billion for the quarter. On average, analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This trade represents a 48.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider William Abbey sold 6,566 shares of ARM stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the sale, the insider owned 20,563 shares of the company’s stock, valued at approximately $8,281,131.36. This trade represents a 24.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 248,205 shares of company stock valued at $57,741,572 over the last 90 days.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Morgan Stanley increased its position in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after purchasing an additional 45,314 shares during the last quarter. Invesco Ltd. grew its stake in ARM by 36.9% in the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after purchasing an additional 654,727 shares in the last quarter. Coatue Management LLC grew its stake in ARM by 1.8% in the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after purchasing an additional 40,174 shares in the last quarter. Wellington Management Group LLP increased its holdings in ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after buying an additional 631,576 shares during the last quarter. Finally, Schroder Investment Management Group increased its holdings in ARM by 11.0% in the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after buying an additional 187,035 shares during the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

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.