ARM (NASDAQ:ARM) Trading 9.2% Higher – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded up 9.2% on Thursday . The company traded as high as $339.44 and last traded at $327.87. Approximately 7,051,436 shares traded hands during mid-day trading, a decline of 21% from the average daily volume of 8,878,759 shares. The stock had previously closed at $300.24.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ARM. Bank of America raised their price target on ARM from $335.00 to $460.00 and gave the company a “neutral” rating in a research note on Tuesday, June 23rd. Needham & Company LLC reissued a “buy” rating and set a $400.00 target price on shares of ARM in a research report on Tuesday, June 16th. Mizuho boosted their target price on ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Jefferies Financial Group set a $290.00 price target on ARM in a report on Thursday, May 21st. Finally, New Street Research cut shares of ARM from a “buy” rating to a “neutral” rating in a report on Thursday, June 18th. Nineteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $279.83.

ARM Trading Up 9.2%

The firm has a market capitalization of $350.19 billion, a PE ratio of 390.32, a P/E/G ratio of 10.91 and a beta of 3.76. The company has a fifty day moving average price of $313.06 and a two-hundred day moving average price of $194.38.

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

Insider Transactions at ARM

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of ARM stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the transaction, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at $4,765,414.50. The trade was a 48.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider William Abbey sold 6,566 shares of ARM stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the transaction, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. The trade was a 24.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 248,205 shares of company stock worth $57,741,572 in the last three months.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ARM. Rathbones Group PLC lifted its holdings in shares of 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 during the period. Paragon Capital Management Inc. acquired a new position in ARM during the fourth quarter worth $826,000. Lansdowne Partners UK LLP purchased a new position in ARM in the third quarter worth $8,486,000. Hyperion Asset Management Ltd purchased a new position in ARM in the third quarter worth $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in ARM by 34.7% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after acquiring an additional 6,232 shares during the period. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.