ARM (NASDAQ:ARM) Shares Up 7.7% - Time to Buy?

Key Points

• ARM Holdings' shares surged by 7.7% on Wednesday, reaching a last trading price of $151.63 as approximately 4.2 million shares changed hands.
• Analysts are optimistic about ARM, with a consensus rating of "Moderate Buy" and a price target averaging $169.67, following several upgrades from brokerages.
• In its latest quarterly earnings, ARM reported a 12.1% year-over-year revenue increase with earnings per share of $0.35, exceeding analysts' estimates.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) was up 7.7% on Wednesday . The company traded as high as $151.96 and last traded at $151.63. Approximately 4,237,539 shares changed hands during trading, a decline of 20% from the average daily volume of 5,287,493 shares. The stock had previously closed at $140.80.

Analyst Ratings Changes

Several brokerages recently commented on ARM. Guggenheim raised their price objective on ARM from $147.00 to $187.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. BNP Paribas upgraded ARM from a "neutral" rating to an "outperform" rating and increased their price target for the stock from $110.00 to $210.00 in a report on Wednesday, July 16th. Seaport Res Ptn upgraded ARM to a "strong-buy" rating in a report on Monday, August 11th. Loop Capital lowered their target price on ARM from $195.00 to $155.00 and set a "buy" rating for the company in a research note on Tuesday, May 13th. Finally, BNP Paribas Exane raised shares of ARM from a "neutral" rating to an "outperform" rating and set a $210.00 price target on the stock in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $169.67.

ARM Stock Performance

The stock has a market cap of $160.75 billion, a price-to-earnings ratio of 230.37, a P/E/G ratio of 9.30 and a beta of 4.17. The business has a 50-day simple moving average of $145.13 and a two-hundred day simple moving average of $130.72.

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

Institutional Trading of ARM

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sowell Financial Services LLC acquired a new position in ARM during the first quarter valued at approximately $229,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of ARM by 12.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 107,728 shares of the company's stock worth $11,505,000 after purchasing an additional 11,953 shares in the last quarter. Cerity Partners LLC boosted its holdings in shares of ARM by 19.2% in the 1st quarter. Cerity Partners LLC now owns 14,671 shares of the company's stock valued at $1,567,000 after buying an additional 2,358 shares during the last quarter. Spire Wealth Management grew its stake in shares of ARM by 15.7% in the first quarter. Spire Wealth Management now owns 1,174 shares of the company's stock valued at $125,000 after buying an additional 159 shares in the last quarter. Finally, Farther Finance Advisors LLC increased its holdings in ARM by 85.7% during the first quarter. Farther Finance Advisors LLC now owns 1,616 shares of the company's stock worth $173,000 after buying an additional 746 shares during the last quarter. Institutional investors and hedge funds own 7.53% of the company's stock.

About ARM

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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