ARM (NASDAQ:ARM) Upgraded by Piper Sandler to "Strong-Buy" Rating

Key Points

• Piper Sandler upgraded ARM to “strong buy,” while broader analyst sentiment remains “Moderate Buy,” with an average price target of $305.72.
• ARM reported a quarterly earnings beat, posting $0.45 EPS versus $0.40 expected and $1.29 billion in revenue, up 22.4% year over year.
• ARM shares opened at $254.18, with a market capitalization of $271.48 billion; the stock has traded between $100.02 and $452.70 over the past year.

ARM (NASDAQ:ARM - Get Free Report) was upgraded by investment analysts at Piper Sandler to a "strong-buy" rating in a report released on Wednesday, Zacks reports.

Several other research analysts have also commented on ARM. Barclays boosted their price objective on ARM from $250.00 to $360.00 and gave the stock an "overweight" rating in a report on Monday, June 1st. HSBC downgraded shares of ARM from a "buy" rating to a "hold" rating and raised their target price for the company from $255.00 to $315.00 in a research note on Tuesday, July 14th. TD Cowen decreased their price target on shares of ARM from $475.00 to $350.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Weiss Ratings restated a "hold (c)" rating on shares of ARM in a research report on Friday, July 17th. Finally, Bank of America reaffirmed a "neutral" rating on shares of ARM in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $305.72.

ARM Stock Performance

NASDAQ:ARM opened at $254.18 on Wednesday. The firm has a market capitalization of $271.48 billion, a price-to-earnings ratio of 262.04, a P/E/G ratio of 7.83 and a beta of 3.89. ARM has a 52-week low of $100.02 and a 52-week high of $452.70. The stock has a fifty day moving average of $266.85 and a 200 day moving average of $242.61.

ARM (NASDAQ:ARM - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The business had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the company earned $0.35 EPS. The company's quarterly revenue was up 22.4% compared to the same quarter last year. Equities analysts forecast that ARM will post 1.15 earnings per share for the current fiscal year.

Insider Activity at ARM

In other news, CFO Jason Child sold 10,400 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total value of $2,655,432.00. Following the completion of the sale, the chief financial officer directly owned 163,832 shares in the company, valued at approximately $41,831,224.56. The trade was a 5.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

Institutional investors have recently made changes to their positions in the business. Capstone Financial Advisors Inc. purchased a new position in ARM in the 2nd quarter worth $308,000. MCF Advisors LLC boosted its position in ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company's stock valued at $271,000 after buying an additional 80 shares during the period. BlueCrest Capital Management Ltd purchased a new stake in ARM during the second quarter valued at about $1,359,000. NorthRock Partners LLC bought a new position in shares of ARM during the second quarter valued at about $649,000. Finally, Integrated Wealth Concepts LLC grew its stake in shares of ARM by 25.7% during the second quarter. Integrated Wealth Concepts LLC now owns 15,646 shares of the company's stock valued at $5,547,000 after buying an additional 3,195 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company's stock.

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm's portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.

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