ARM (NASDAQ:ARM) Stock Price Up 1.2% - Here's Why

Key Points

• ARM Holdings PLC's stock price increased by 1.2% to $141.49, with a trading volume significantly lower than average.
• Analysts have raised their target prices for ARM, with Mizuho setting a new target of $180.00 and Wells Fargo raising theirs to $175.00, reflecting strong market confidence.
• ARM reported earnings of $0.35 per share, exceeding expectations, despite revenue falling slightly short of forecasts at $1.05 billion.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) was up 1.2% on Tuesday . The stock traded as high as $141.68 and last traded at $141.49. Approximately 2,543,587 shares changed hands during mid-day trading, a decline of 52% from the average daily volume of 5,285,239 shares. The stock had previously closed at $139.80.

Analysts Set New Price Targets

Several equities analysts have weighed in on ARM shares. Mizuho lifted their target price on ARM from $160.00 to $180.00 and gave the company an "outperform" rating in a research report on Thursday, July 3rd. Wells Fargo & Company lifted their target price on ARM from $145.00 to $175.00 and gave the company an "overweight" rating in a research report on Monday, July 21st. Needham & Company LLC reaffirmed a "hold" rating on shares of ARM in a research report on Thursday, July 31st. KeyCorp reaffirmed an "overweight" rating and issued a $190.00 target price (up from $175.00) on shares of ARM in a research report on Thursday, July 31st. Finally, Guggenheim lifted their target price on ARM from $147.00 to $187.00 and gave the company a "buy" rating in a research report on Monday, June 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, ARM presently has a consensus rating of "Moderate Buy" and a consensus target price of $168.52.

ARM Stock Up 1.2%

The stock has a 50-day moving average price of $143.87 and a 200 day moving average price of $133.02. The firm has a market capitalization of $149.49 billion, a price-to-earnings ratio of 214.38, a P/E/G ratio of 9.33 and a beta of 4.17.

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

Institutional Investors Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in the business. Reynders McVeigh Capital Management LLC lifted its stake in ARM by 16.3% during the second quarter. Reynders McVeigh Capital Management LLC now owns 137,598 shares of the company's stock worth $22,255,000 after purchasing an additional 19,319 shares during the last quarter. Centaurus Financial Inc. lifted its stake in ARM by 1.7% in the second quarter. Centaurus Financial Inc. now owns 8,541 shares of the company's stock valued at $1,381,000 after buying an additional 142 shares during the last quarter. Orion Porfolio Solutions LLC purchased a new stake in ARM in the second quarter valued at approximately $6,277,000. Cim Investment Management Inc. increased its holdings in shares of ARM by 99.6% in the 2nd quarter. Cim Investment Management Inc. now owns 17,574 shares of the company's stock valued at $2,842,000 after acquiring an additional 8,770 shares during the period. Finally, B. Riley Wealth Advisors Inc. purchased a new stake in ARM in the 2nd quarter valued at $1,293,000. Hedge funds and other institutional investors 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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