ARM (NASDAQ:ARM) Price Target Raised to $125.00

Key Points

• Goldman Sachs raised its price target on ARM from $110 to $125 but kept a "sell" rating, signaling about a 15.7% downside from the stock's current price.
• By contrast, the analyst consensus is more bullish — 18 Buys, 7 Holds and 1 Sell — with a consensus price target of $172.33.
• Insider activity shows recent selling by CEO Rene A. Haas and CFO Jason Child, and insiders have offloaded 53,133 shares worth about $8.29 million over the last 90 days.

ARM (NASDAQ:ARM - Get Free Report) had its target price raised by research analysts at The Goldman Sachs Group from $110.00 to $125.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "sell" rating on the stock. The Goldman Sachs Group's price target would indicate a potential downside of 15.67% from the stock's current price.

Several other research firms have also weighed in on ARM. Jefferies Financial Group set a $170.00 price objective on ARM in a research note on Thursday, February 5th. Oddo Bhf set a $170.00 price objective on ARM in a research note on Monday, January 5th. Susquehanna raised ARM from a "neutral" rating to a "positive" rating and set a $150.00 price objective on the stock in a research note on Wednesday, January 21st. Barclays reaffirmed an "overweight" rating and issued a $165.00 price objective on shares of ARM in a research note on Thursday, March 26th. Finally, TD Cowen reduced their price objective on ARM from $190.00 to $165.00 and set a "buy" rating on the stock in a research note on Thursday, February 5th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, ARM currently has an average rating of "Moderate Buy" and a consensus price target of $172.33.

ARM Trading Down 0.5%

Shares of NASDAQ ARM traded down $0.68 on Thursday, reaching $148.23. 3,600,510 shares of the company traded hands, compared to its average volume of 6,846,813. ARM has a fifty-two week low of $95.32 and a fifty-two week high of $183.16. The company has a 50 day moving average of $128.10 and a 200 day moving average of $134.11. The stock has a market capitalization of $156.60 billion, a PE ratio of 198.27, a P/E/G ratio of 6.65 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, beating analysts' consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the prior year, the company posted $0.39 EPS. The company's quarterly revenue was up 26.3% compared to the same quarter last year. As a group, research analysts expect that ARM will post 0.9 earnings per share for the current year.

Insider Transactions at ARM

In related news, CEO Rene A. Haas sold 7,986 shares of the stock in a transaction that occurred on Thursday, March 26th. The shares were sold at an average price of $160.86, for a total transaction of $1,284,627.96. Following the transaction, the chief executive officer owned 282,979 shares in the company, valued at $45,520,001.94. This represents a 2.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jason Child sold 21,280 shares of the business's stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total value of $3,157,313.60. Following the transaction, the chief financial officer owned 174,706 shares of the company's stock, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 53,133 shares of company stock worth $8,288,586 over the last ninety days.

Institutional Investors Weigh In On ARM

Institutional investors have recently made changes to their positions in the company. Amundi grew its position in shares of ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company's stock worth $1,153,000 after buying an additional 2,345 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of ARM by 28.8% in the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company's stock valued at $522,000 after acquiring an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. grew its stake in shares of 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 during the period. Bank of Nova Scotia purchased a new stake in shares of ARM in the second quarter valued at approximately $556,000. Finally, State Street Corp increased its position in shares of ARM by 14.7% in the second quarter. State Street Corp now owns 441,445 shares of the company's stock valued at $71,399,000 after buying an additional 56,656 shares in the last quarter. Institutional investors own 7.53% of the company's stock.

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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