ARM (NASDAQ:ARM) Trading 4.8% Higher – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded up 4.8% on Tuesday . The stock traded as high as $325.00 and last traded at $321.22. 10,840,669 shares were traded during trading, an increase of 32% from the average session volume of 8,198,217 shares. The stock had previously closed at $306.51.

Analyst Ratings Changes

Several analysts have weighed in on the company. Guggenheim boosted their price target on ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Susquehanna boosted their price target on ARM from $170.00 to $210.00 and gave the company a “positive” rating in a research note on Thursday, April 16th. Sanford C. Bernstein assumed coverage on ARM in a research note on Monday, May 18th. They set an “outperform” rating and a $300.00 price target on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. Finally, Rosenblatt Securities boosted their price target on ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Twenty investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $208.79.

ARM Trading Up 4.9%

The firm has a market cap of $339.69 billion, a price-to-earnings ratio of 382.76, a PEG ratio of 11.13 and a beta of 3.40. The company has a fifty day moving average price of $182.87 and a 200-day moving average price of $144.53.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. As a group, research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares of the company’s stock, valued at $46,894,829.05. The trade was a 7.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction dated 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 directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. This trade represents a 81.45% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 276,966 shares of company stock worth $56,798,645.

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of the business. GKV Capital Management Co. Inc. acquired a new position in ARM in the 1st quarter worth about $106,000. CTC Alternative Strategies Ltd. acquired a new position in ARM in the 1st quarter worth about $2,322,000. BankChampaign National Association acquired a new position in ARM in the 1st quarter worth about $510,000. Groupe la Francaise raised its holdings in ARM by 62.9% in the 1st quarter. Groupe la Francaise now owns 41,953 shares of the company’s stock worth $6,309,000 after purchasing an additional 16,201 shares during the period. Finally, Liontrust Investment Partners LLP raised its holdings in ARM by 139.7% in the 1st quarter. Liontrust Investment Partners LLP now owns 347,339 shares of the company’s stock worth $52,545,000 after purchasing an additional 202,410 shares during the period. 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.