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

Key Points

• Consensus: Moderate Buy — 25 analysts cover ARM with a consensus rating of "Moderate Buy" (18 buys, 6 holds, 1 sell) and an average 12‑month target price of $174.83.
• Insider selling — CFO Jason Child and CEO Rene A. Haas sold shares on March 25 (21,280 and 23,867 shares respectively), and insiders have sold 62,432 shares worth about $9.78M over the last three months.
• Valuation & recent results — ARM has a market cap of about $184.99B, a P/E of 233.47, a 52‑week range of $95.32–$183.16, and last quarter reported $0.43 EPS (vs. $0.41 est.) with revenue up 26.3% year‑over‑year to $1.24B.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the twenty-five ratings firms that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and eighteen have given a buy rating to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $174.8333.

Several research analysts recently weighed in on the company. HSBC raised ARM from a "reduce" rating to a "buy" rating and upped their price target for the company from $90.00 to $205.00 in a research report on Friday, March 20th. KeyCorp reissued an "overweight" rating on shares of ARM in a research report on Thursday, February 5th. Wells Fargo & Company upped their price target on ARM from $165.00 to $175.00 and gave the company an "overweight" rating in a research report on Wednesday, April 1st. Raymond James Financial raised ARM from a "market perform" rating to an "outperform" rating and set a $166.00 price target on the stock in a research report on Wednesday, March 25th. Finally, Evercore dropped their price target on ARM from $215.00 to $170.00 and set an "outperform" rating on the stock in a research report on Thursday, February 5th.

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 21,280 shares of the company's stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the transaction, the chief financial officer directly owned 174,706 shares of the company's stock, valued at approximately $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of the company's stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares in the company, valued at $46,894,829.05. The trade was a 7.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 62,432 shares of company stock worth $9,784,330 over the last three months.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Compound Planning Inc. increased its position in ARM by 4.6% in the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company's stock worth $222,000 after purchasing an additional 69 shares during the last quarter. Ritholtz Wealth Management increased its position in ARM by 3.0% in the 3rd quarter. Ritholtz Wealth Management now owns 2,439 shares of the company's stock worth $345,000 after purchasing an additional 70 shares during the last quarter. Rathbones Group PLC increased its position in ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company's stock worth $1,493,000 after purchasing an additional 70 shares during the last quarter. Nwam LLC increased its position in ARM by 4.3% in the 3rd quarter. Nwam LLC now owns 1,711 shares of the company's stock worth $242,000 after purchasing an additional 71 shares during the last quarter. Finally, Kovack Advisors Inc. increased its position in ARM by 2.0% in the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company's stock worth $510,000 after purchasing an additional 72 shares during the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

ARM Stock Performance

ARM stock opened at $175.10 on Tuesday. The company has a 50 day moving average price of $135.94 and a 200 day moving average price of $134.97. ARM has a 52 week low of $95.32 and a 52 week high of $183.16. The firm has a market capitalization of $184.99 billion, a price-to-earnings ratio of 233.47, a P/E/G ratio of 7.52 and a beta of 3.33.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The company reported $0.43 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.02. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company's revenue was up 26.3% on a year-over-year basis. During the same quarter last year, the business posted $0.39 EPS. Equities analysts forecast that ARM will post 0.85 earnings per share for the current fiscal year.

ARM Company Profile

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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