ARM (NASDAQ:ARM) Stock Price Up 8.3% – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 8.3% during trading on Monday . The company traded as high as $416.17 and last traded at $412.55. Approximately 13,904,382 shares were traded during trading, an increase of 59% from the average daily volume of 8,756,665 shares. The stock had previously closed at $380.81.

Analyst Ratings Changes

ARM has been the topic of a number of research analyst reports. Morgan Stanley reissued an “equal weight” rating and set a $150.00 price objective (up from $135.00) on shares of ARM in a report on Tuesday, April 7th. Susquehanna boosted their price objective on shares of ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a report on Thursday, April 16th. Jefferies Financial Group set a $290.00 price objective on shares of ARM in a report on Thursday, May 21st. HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and boosted their price objective for the stock from $90.00 to $205.00 in a report on Friday, March 20th. Finally, TD Cowen lifted their target price on shares of ARM from $165.00 to $265.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $239.00.

ARM Price Performance

The company has a market cap of $440.64 billion, a price-to-earnings ratio of 491.13, a PEG ratio of 13.83 and a beta of 3.77. The business’s 50-day simple moving average is $243.82 and its 200-day simple moving average is $165.36.

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 company had revenue of $1.49 billion during the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. As a group, sell-side analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In other news, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the completion of the transaction, the insider owned 5,543 shares of the company’s stock, valued at $1,159,318.45. The trade was a 81.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the completion of the transaction, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 301,338 shares of company stock valued at $66,030,158.

Hedge Funds Weigh In On ARM

Institutional investors have recently modified their holdings of the company. Syntax Research Inc. acquired a new position in shares of ARM in the first quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM in the first quarter valued at approximately $30,000. FWL Investment Management LLC acquired a new position in shares of ARM in the second quarter valued at approximately $34,000. Cassaday & Co Wealth Management LLC acquired a new position in shares of ARM in the first quarter valued at approximately $40,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of ARM in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds 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.