ARM (NASDAQ:ARM) Trading Up 4.9% – What’s Next?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 4.9% during mid-day trading on Thursday . The company traded as high as $452.70 and last traded at $439.46. Approximately 34,099,578 shares changed hands during mid-day trading, an increase of 280% from the average session volume of 8,965,751 shares. The stock had previously closed at $418.88.

Analysts Set New Price Targets

Several equities analysts have recently commented on ARM shares. Wells Fargo & Company upped their price target on shares of ARM from $255.00 to $410.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. The Goldman Sachs Group lifted their price objective on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research report on Thursday, May 7th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. Jefferies Financial Group set a $290.00 target price on shares of ARM in a research report on Thursday, May 21st. Finally, Bank of America raised their price target on shares of ARM from $245.00 to $335.00 and gave the company a “neutral” rating in a research note on Thursday, June 11th. Nineteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $253.38.

ARM Price Performance

The business has a fifty day moving average price of $271.16 and a 200 day moving average price of $175.21. The company has a market capitalization of $469.38 billion, a price-to-earnings ratio of 523.17, a price-to-earnings-growth ratio of 15.96 and a beta of 3.78.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business 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%. Research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current year.

Insider Activity at ARM

In related news, CFO Jason Child sold 31,920 shares of the firm’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 transaction, the chief financial officer owned 174,232 shares in the company, valued at $39,470,517.28. This trade represents a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total value of $4,439,866.20. Following the sale, the chief accounting officer directly owned 12,135 shares in the company, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 301,338 shares of company stock valued at $66,030,158 over the last quarter.

Hedge Funds Weigh In On ARM

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