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

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares gapped up prior to trading on Friday. The stock had previously closed at $292.34, but opened at $306.78. ARM shares last traded at $311.89, with a volume of 1,061,349 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Sanford C. Bernstein set a $500.00 price objective on ARM in a research report on Wednesday, June 17th. TD Cowen reduced their target price on shares of ARM from $475.00 to $350.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Jefferies Financial Group restated a “buy” rating and issued a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Rosenblatt Securities lowered their price target on shares of ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Trading Up 7.5%

The stock has a 50 day simple moving average of $264.70 and a 200 day simple moving average of $259.93. The stock has a market cap of $335.67 billion, a P/E ratio of 324.00, a price-to-earnings-growth ratio of 8.59 and a beta of 3.78.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating 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%.The company’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.35 EPS. Equities analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several hedge funds have recently bought and sold shares of the company. Hyperion Asset Management Ltd lifted its holdings in shares of ARM by 28.0% during the 4th quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after acquiring an additional 401,594 shares during the period. Capital Research Global Investors raised its holdings in shares of ARM by 5.1% during the 4th quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock worth $197,332,000 after buying an additional 86,978 shares in the last quarter. Franklin Resources Inc. raised its holdings in shares of ARM by 0.7% during the 4th quarter. Franklin Resources Inc. now owns 1,461,410 shares of the company’s stock worth $159,747,000 after buying an additional 10,385 shares in the last quarter. Employees Provident Fund Board bought a new stake in shares of ARM during the 4th quarter worth $120,241,000. Finally, SG Americas Securities LLC boosted its stake in shares of ARM by 265.6% in the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after purchasing an additional 705,459 shares in the last quarter. 7.53% of the stock is owned by institutional investors.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.