ARM (NASDAQ:ARM) Shares Gap Up – Here’s What Happened

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares gapped up before the market opened on Thursday . The stock had previously closed at $243.98, but opened at $262.00. ARM shares last traded at $261.7270, with a volume of 1,000,668 shares.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Susquehanna lifted their price objective on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Needham & Company LLC reissued a “buy” rating and set a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. TD Cowen cut their target price on ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Wells Fargo & Company cut their target price on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, Mizuho boosted their price target on ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, ARM has a consensus rating of “Moderate Buy” and an average target price of $305.72.

ARM Price Performance

The firm has a market capitalization of $278.17 billion, a P/E ratio of 269.09, a price-to-earnings-growth ratio of 7.17 and a beta of 3.89. The business has a 50 day moving average price of $261.88 and a 200 day moving average price of $245.97.

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

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $255.33, for a total value of $2,655,432.00. Following the completion of the sale, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at approximately $41,831,224.56. This represents a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Hedge funds have recently bought and sold shares of the stock. Employees Provident Fund Board bought a new stake in shares of ARM in the 4th quarter valued at approximately $120,241,000. Arrowstreet Capital Limited Partnership lifted its position in shares of ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares during the period. Janus Henderson Group PLC bought a new position in shares of ARM during the 1st quarter worth approximately $116,112,000. SG Americas Securities LLC boosted its stake in ARM by 265.6% in the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after buying an additional 705,459 shares in the last quarter. Finally, Rathbones Group PLC boosted its stake in ARM by 4,638.8% in the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock valued at $54,660,000 after buying an additional 489,491 shares in the last quarter. 7.53% of the stock is owned by institutional investors.

ARM Company Profile

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.