ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• ARM Holdings has a consensus analyst rating of “Moderate Buy” from 26 covering firms, with 19 buy ratings, six holds, and one sell. The average 12-month price target is about $199.61.
• Recent analyst actions were mixed but generally constructive, including price target increases from Susquehanna and Mizuho, while UBS trimmed its target and Deutsche Bank and Weiss reiterated hold ratings.
• ARM’s stock was trading at $209.16, above its 50-day and 200-day moving averages, and the company reported quarterly EPS of $0.60 on revenue of $1.49 billion. Insiders have also sold shares in recent months, including CEO Rene A. Haas and insider Spencer Collins.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-six research firms that are currently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, six have given a hold rating and nineteen have given a buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $199.6087.

Several equities analysts have recently weighed in on the stock. UBS Group lowered their price objective on shares of ARM from $175.00 to $170.00 and set a "buy" rating on the stock in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of ARM in a research note on Thursday, May 7th. Susquehanna lifted their price target on shares of ARM from $170.00 to $210.00 and gave the company a "positive" rating in a report on Thursday, April 16th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ARM in a research note on Monday, April 20th. Finally, Mizuho upped their target price on shares of ARM from $230.00 to $255.00 and gave the company an "outperform" rating in a research report on Wednesday, May 6th.

ARM Price Performance

ARM stock opened at $209.16 on Friday. The business's fifty day moving average is $164.92 and its 200 day moving average is $140.59. ARM has a one year low of $100.02 and a one year high of $239.50. The stock has a market capitalization of $220.98 billion, a PE ratio of 249.00, a price-to-earnings-growth ratio of 7.88 and a beta of 3.40.

ARM (NASDAQ:ARM - Get Free Report) last issued its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. As a group, sell-side analysts expect that ARM will post 1.18 EPS for the current fiscal year.

Insider Buying and Selling

In other ARM news, CEO Rene A. Haas sold 23,867 shares of the company's stock in a transaction on 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 transaction, the chief executive officer owned 290,965 shares of the company's stock, valued at $46,894,829.05. This represents a 7.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Spencer Collins sold 51,961 shares of the company's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the transaction, the insider owned 51,125 shares in the company, valued at approximately $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 135,673 shares of company stock valued at $24,616,433.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Grey Fox Wealth Advisors LLC bought a new position in ARM during the 3rd quarter worth about $28,000. Syntax Research Inc. purchased a new stake in shares of ARM during the 1st quarter valued at $30,000. FWL Investment Management LLC acquired a new stake in ARM in the second quarter worth about $34,000. Cassaday & Co Wealth Management LLC acquired a new stake in ARM in the 1st quarter worth approximately $40,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in shares of ARM during the fourth quarter valued at $30,000. Institutional investors own 7.53% of the company's stock.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s software and hardware ecosystem continues to reinforce its competitive moat, supporting its leadership in smartphones and device computing. ARM's Powerful Ecosystem Advantage Drives Market Leadership
• Positive Sentiment: Recent reporting says Arm and SoftBank tried to buy Cerebras, signaling continued ambition to expand Arm’s footprint in AI semiconductors. Arm’s Cerebras Bid Sheds Light On AI Chip Expansion Plans
• Positive Sentiment: UBS data showed ARM gaining server chip share at Intel’s expense, reinforcing the bull case for Arm’s long-term growth in data center and AI-related markets. New report shows AMD and ARM continue server share gains at Intel’s expense
• Neutral Sentiment: Analysts warned that the AI trade may be taking a breather, which has weighed on chip stocks broadly rather than on ARM-specific fundamentals. The AI Trade Takes a Breather to End the Week
• Neutral Sentiment: A major insider sale by Spencer Collins may be adding near-term pressure, though it does not change the company’s operating outlook by itself. ARM Insider Spencer Collins Sells 51,961 Shares
• Negative Sentiment: Another market note linked ARM to warnings about a potential chip-stock bubble, contributing to the day’s risk-off sentiment in semiconductor names. Intel Stock Is Falling as Analyst Issues Chip-Stock Bubble Warning

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.

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