ARM (NASDAQ:ARM) Stock Price Up 4.1% - Here's Why

Key Points

• ARM stock jumped 4.1%, trading as high as $210.80 and last at $204.61, with volume surging ~134% to about 16.4 million shares versus its ~7.0 million daily average.
• Analysts remain broadly positive — 18 Buy, 6 Hold and 1 Sell — with an average target of $174.83; Susquehanna raised its target to $210 while other firms' targets vary.
• ARM beat quarterly estimates with $0.43 EPS vs $0.41 and $1.24 billion revenue (up 26.3% YoY), but insiders have been selling recently (62,432 shares worth ~$9.78 million over the past 90 days).

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) rose 4.1% on Thursday . The company traded as high as $210.80 and last traded at $204.61. Approximately 16,374,811 shares were traded during mid-day trading, an increase of 134% from the average daily volume of 6,996,535 shares. The stock had previously closed at $196.57.

Analysts Set New Price Targets

Several equities research analysts recently commented on ARM shares. Susquehanna increased their price objective on ARM from $170.00 to $210.00 and gave the company a "positive" rating in a research report on Thursday, April 16th. Barclays reaffirmed an "overweight" rating and set a $165.00 price objective on shares of ARM in a research report on Thursday, March 26th. New Street Research raised shares of ARM from a "neutral" rating to a "buy" rating in a report on Thursday, February 5th. TD Cowen decreased their price objective on shares of ARM from $190.00 to $165.00 and set a "buy" rating for the company in a report on Thursday, February 5th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of ARM in a report on Monday. Eighteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $174.83.

ARM Trading Up 4.1%

The stock has a market capitalization of $216.17 billion, a PE ratio of 272.81, a P/E/G ratio of 7.91 and a beta of 3.33. The stock has a 50 day moving average price of $138.35 and a 200-day moving average price of $135.56.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the prior year, the firm earned $0.39 EPS. The business's revenue for the quarter was up 26.3% compared to the same quarter last year. Research analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.85 earnings per share for the current year.

Insider Activity

In other news, CEO Rene A. Haas sold 9,299 shares of the company's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $160.85, for a total transaction of $1,495,744.15. Following the completion of the sale, the chief executive officer owned 273,680 shares of the company's stock, valued at $44,021,428. This represents a 3.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the transaction, the chief financial officer owned 174,706 shares in the company, valued at $25,921,129.22. This represents a 10.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 62,432 shares of company stock valued at $9,784,330 in the last ninety days.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC increased its position in ARM by 126.0% in the third quarter. GAMMA Investing LLC now owns 174 shares of the company's stock worth $25,000 after buying an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC purchased a new stake in ARM in the third quarter worth about $28,000. FWL Investment Management LLC purchased a new stake in ARM in the second quarter worth about $34,000. Mcguire Capital Advisors Inc. purchased a new stake in ARM in the fourth quarter worth about $30,000. Finally, Strategic Investment Solutions Inc. IL lifted its holdings in ARM by 238.1% during the third quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company's stock valued at $40,000 after purchasing an additional 200 shares in the last quarter. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.