ARM (NASDAQ:ARM) Shares Up 4.4% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 4.4% during mid-day trading on Thursday . The company traded as high as $295.57 and last traded at $286.68. 4,355,217 shares changed hands during trading, a decline of 49% from the average daily volume of 8,529,784 shares. The stock had previously closed at $274.58.

Analysts Set New Price Targets

ARM has been the topic of several research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research note on Friday, July 17th. 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 note on Thursday, May 7th. Needham & Company LLC restated a “buy” rating and set a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Barclays boosted their target price on ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a report on Monday, June 1st. Finally, Wells Fargo & Company dropped their price target on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $285.33.

ARM Stock Performance

The company’s 50-day simple moving average is $325.91 and its two-hundred day simple moving average is $216.97. The firm has a market cap of $306.20 billion, a PE ratio of 295.55, a PEG ratio of 8.32 and a beta of 3.90.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the firm posted $0.35 EPS. ARM’s quarterly revenue was up 22.4% compared to the same quarter last year. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, analysts expect that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Buying and Selling

In related news, CAO Laura Kathleen Bartels sold 11,306 shares of the 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 completion of the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This trade represents a 48.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This trade represents a 15.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 216,049 shares of company stock valued at $52,101,605 in the last three months.

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of the company. GoalFusion Wealth Management LLC purchased a new stake in ARM during the second quarter worth about $321,000. Redhawk Wealth Advisors Inc. purchased a new stake in ARM during the 2nd quarter worth about $375,000. Wealthcare Advisory Partners LLC acquired a new stake in shares of ARM during the 2nd quarter worth about $326,000. First Bank & Trust purchased a new stake in shares of ARM during the second quarter worth about $274,000. Finally, Vertrix Wealth Management LLC purchased a new stake in ARM in the 2nd quarter worth approximately $292,000. Hedge funds and other institutional investors 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.