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

Key Points

• Analysts maintain a “Moderate Buy” consensus on ARM, with 18 buy ratings, seven holds and one sell among 26 firms. The average 12-month price target is $285.33, though individual targets range as high as $500.
• ARM reported quarterly EPS of $0.45 versus the $0.40 consensus, while revenue reached $1.29 billion, up 22.4% year over year and above estimates.
• Insiders sold 22,072 shares worth approximately $8.5 million over the past quarter, while institutional ownership stands at 7.53%; ARM shares opened at $243.32 and have traded between $100.02 and $452.70 over the past year.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) has received an average rating of "Moderate Buy" from the twenty-six research firms that are covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and eighteen have assigned a buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $285.3333.

ARM has been the subject of several research analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ARM in a research note on Friday, July 17th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of ARM in a research report on Thursday, May 7th. Raymond James Financial restated an "outperform" rating on shares of ARM in a research note on Thursday, May 7th. Barclays boosted their target price on ARM from $250.00 to $360.00 and gave the company an "overweight" rating in a research report on Monday, June 1st. Finally, Sanford C. Bernstein set a $500.00 price target on ARM in a research note on Wednesday, June 17th.

Insiders Place Their Bets

In other ARM news, insider William Abbey sold 6,566 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the sale, the insider owned 20,563 shares in the company, valued at approximately $8,281,131.36. The trade was a 24.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the transaction, the chief accounting officer owned 12,135 shares in the company, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 22,072 shares of company stock worth $8,528,128.

Institutional Investors Weigh In On ARM

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Amundi lifted its position in ARM by 24.8% in the 1st quarter. Amundi now owns 11,804 shares of the company's stock valued at $1,153,000 after acquiring an additional 2,345 shares in the last quarter. Empowered Funds LLC increased its holdings in ARM by 28.8% during the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company's stock worth $522,000 after purchasing an additional 1,094 shares in the last quarter. Schnieders Capital Management LLC. increased its holdings in ARM by 9.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company's stock worth $393,000 after purchasing an additional 200 shares in the last quarter. Bank of Nova Scotia bought a new stake in ARM during the 2nd quarter worth approximately $556,000. Finally, State Street Corp raised its stake in shares of ARM by 14.7% in the second quarter. State Street Corp now owns 441,445 shares of the company's stock worth $71,399,000 after purchasing an additional 56,656 shares during the last quarter. 7.53% of the stock is owned by institutional investors.

ARM Price Performance

Shares of ARM stock opened at $243.32 on Monday. The firm has a 50 day moving average of $303.00 and a 200-day moving average of $230.18. The company has a market cap of $259.89 billion, a price-to-earnings ratio of 250.85, a price-to-earnings-growth ratio of 7.21 and a beta of 3.91. ARM has a 52 week low of $100.02 and a 52 week high of $452.70.

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

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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