ARM (NASDAQ:ARM) Shares Up 11.1% - Here's What Happened

Key Points

• ARM Holdings PLC shares rose by 11.1%, reaching a last traded price of $171.94, significantly up from a previous close of $154.81.
• Analysts have mixed ratings for ARM, with target prices ranging from $160.00 to $190.00, indicating a consensus rating of "Moderate Buy."
• The company reported $1.05 billion in revenue for the last quarter, a 12.1% year-over-year increase, and an earnings per share (EPS) of $0.35 that beat estimates.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shot up 11.1% on Monday . The company traded as high as $175.00 and last traded at $171.94. 10,435,852 shares were traded during mid-day trading, an increase of 95% from the average session volume of 5,353,240 shares. The stock had previously closed at $154.81.

Analysts Set New Price Targets

A number of analysts recently commented on ARM shares. The Goldman Sachs Group started coverage on shares of ARM in a research report on Thursday, July 10th. They issued a "neutral" rating and a $160.00 price objective for the company. KeyCorp reiterated an "overweight" rating and set a $190.00 target price (up previously from $175.00) on shares of ARM in a report on Thursday, July 31st. Weiss Ratings reiterated a "hold (c)" rating on shares of ARM in a report on Wednesday, October 8th. Raymond James Financial increased their target price on ARM from $140.00 to $165.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. Finally, Morgan Stanley decreased their price objective on ARM from $180.00 to $171.00 and set an "overweight" rating for the company in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $167.43.

ARM Price Performance

The company's 50-day simple moving average is $143.78 and its 200-day simple moving average is $135.34. The stock has a market capitalization of $181.66 billion, a price-to-earnings ratio of 260.52, a P/E/G ratio of 10.10 and a beta of 4.10.

ARM (NASDAQ:ARM - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.34 by $0.01. The company had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1.06 billion. ARM had a net margin of 16.96% and a return on equity of 15.56%. The business's revenue for the quarter was up 12.1% on a year-over-year basis. During the same period last year, the firm earned $0.40 earnings per share. Research analysts expect that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

A number of hedge funds have recently modified their holdings of the business. GAMMA Investing LLC lifted its holdings in ARM by 126.0% in the third quarter. GAMMA Investing LLC now owns 174 shares of the company's stock valued at $25,000 after buying an additional 97 shares during the period. Huntington National Bank acquired a new position in ARM in the second quarter valued at $30,000. FWL Investment Management LLC acquired a new position in ARM in the second quarter valued at $34,000. Oliver Lagore Vanvalin Investment Group acquired a new position in ARM in the second quarter valued at $39,000. Finally, Brooklyn Investment Group acquired a new position in ARM in the first quarter valued at $28,000. Institutional investors and hedge funds own 7.53% of the company's stock.

ARM Company Profile

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.

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