ARM (NASDAQ:ARM) Price Target Raised to $255.00

Key Points

• Mizuho raised its price target to $255 and kept an "outperform" rating, implying roughly a 15% upside from ARM’s mid-day price (~$221.80).
• Analyst views are mixed despite the Mizuho boost: the consensus target is $177.75 with 18 Buys, 6 Holds and 1 Sell, giving the stock an average rating of "Moderate Buy."
• Insider selling has been notable recently—CEO Rene A. Haas and CFO Jason Child sold shares in late March, and insiders have sold 83,712 shares worth about $13.6 million over the last 90 days.

ARM (NASDAQ:ARM - Get Free Report) had its price target raised by analysts at Mizuho from $230.00 to $255.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Mizuho's price objective would indicate a potential upside of 14.97% from the company's current price.

Several other analysts also recently issued reports on ARM. UBS Group cut their target price 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. Morgan Stanley reissued an "equal weight" rating and set a $150.00 target price (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. Citigroup downgraded shares of ARM from a "buy" rating to a "hold" rating in a research note on Tuesday, January 13th. Bank of America reissued a "neutral" rating and set a $120.00 target price on shares of ARM in a research note on Tuesday, January 13th. Finally, Raymond James Financial raised shares of ARM from a "market perform" rating to an "outperform" rating and set a $166.00 target price on the stock in a research note on Wednesday, March 25th. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $177.75.

ARM Trading Up 6.2%

Shares of NASDAQ ARM traded up $12.96 during mid-day trading on Wednesday, reaching $221.80. The company had a trading volume of 4,679,107 shares, compared to its average volume of 7,259,155. The stock has a market cap of $234.34 billion, a PE ratio of 296.38, a P/E/G ratio of 9.16 and a beta of 3.40. The company has a 50-day moving average price of $150.26 and a two-hundred day moving average price of $137.61. ARM has a 1-year low of $100.02 and a 1-year high of $237.68.

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

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 21,280 shares of the business's stock in a transaction on Wednesday, March 25th. The shares were 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 in the company, valued at $25,921,129.22. The trade was a 10.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Rene A. Haas sold 23,867 shares of the business's stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the transaction, the chief executive officer owned 290,965 shares in the company, valued at approximately $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 83,712 shares of company stock worth $13,614,730.

Institutional Investors Weigh In On ARM

Large investors have recently bought and sold shares of the business. Grey Fox Wealth Advisors LLC bought a new stake in ARM in the third quarter worth $28,000. Syntax Research Inc. bought a new stake in ARM in the first quarter worth $30,000. Mcguire Capital Advisors Inc. bought a new stake in ARM in the fourth quarter worth $30,000. Navalign LLC bought a new stake in ARM in the fourth quarter worth $33,000. Finally, FWL Investment Management LLC acquired a new position in ARM during the 2nd quarter worth $34,000. 7.53% of the stock is currently owned by institutional investors.

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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