ARM (NASDAQ:ARM) Trading Up 17.2% – What’s Next?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 17.2% on Monday . The stock traded as high as $324.16 and last traded at $322.90. 12,851,217 shares traded hands during mid-day trading, an increase of 65% from the average session volume of 7,789,237 shares. The stock had previously closed at $275.61.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Jefferies Financial Group restated a “buy” rating and set a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Rosenblatt Securities dropped their price objective on shares of ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a research note on Friday, July 31st. Susquehanna upped their price objective on shares of ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Morgan Stanley raised their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Finally, Sanford C. Bernstein set a $500.00 target price on shares of ARM in a report on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $305.72.

ARM Price Performance

The stock has a 50 day moving average of $259.66 and a two-hundred day moving average of $248.00. The stock has a market capitalization of $344.88 billion, a PE ratio of 332.89, a P/E/G ratio of 8.17 and a beta of 3.89.

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

Insider Activity

In related news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were 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 owned 163,832 shares in the company, valued at $41,831,224.56. This trade represents a 5.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of the company. IKE Capital LLC raised its holdings in ARM by 88.7% during the second quarter. IKE Capital LLC now owns 5,331 shares of the company’s stock worth $1,890,000 after purchasing an additional 2,506 shares during the last quarter. Capstone Financial Advisors Inc. purchased a new stake in ARM during the second quarter worth $308,000. MCF Advisors LLC grew its holdings in ARM by 11.7% in the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock valued at $271,000 after purchasing an additional 80 shares during the last quarter. BlueCrest Capital Management Ltd acquired a new stake in ARM in the second quarter valued at $1,359,000. Finally, NorthRock Partners LLC purchased a new position in shares of ARM in the second quarter valued at $649,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

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.