ARM (NASDAQ:ARM) Trading 2% Higher - Here's What Happened

Key Points

• ARM Holdings PLC shares rose 2% to trade at $140.91, though trading volume was down 87% from the average session.
• Several analysts have updated their price targets for ARM, with BNP Paribas raising its target to $210.00 and KeyCorp to $190.00, while the consensus target price is $169.67.
• Institutional investors have significantly increased their stakes in ARM, with Goldman Sachs growing its position by 59.3%, highlighting stronger institutional interest in the stock.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares traded up 2% during trading on Monday . The company traded as high as $140.13 and last traded at $140.91. 679,024 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 5,303,794 shares. The stock had previously closed at $138.17.

Analysts Set New Price Targets

ARM has been the topic of several recent research reports. BNP Paribas raised ARM from a "neutral" rating to an "outperform" rating and upped their price objective for the stock from $110.00 to $210.00 in a report on Wednesday, July 16th. UBS Group reduced their target price on ARM from $185.00 to $175.00 and set a "buy" rating on the stock in a report on Thursday, July 31st. Raymond James Financial raised their price objective on shares of ARM from $140.00 to $165.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. The Goldman Sachs Group assumed coverage on ARM in a research report on Thursday, July 10th. They issued a "neutral" rating and a $160.00 price target on the stock. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $169.67.

ARM Price Performance

The firm has a market capitalization of $146.92 billion, a PE ratio of 210.99, a P/E/G ratio of 9.23 and a beta of 4.17. The business has a 50-day simple moving average of $145.89 and a 200-day simple moving average of $130.69.

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. increased its position in shares of ARM by 59.3% during the first quarter. Goldman Sachs Group Inc. now owns 6,574,854 shares of the company's stock valued at $702,129,000 after buying an additional 2,446,224 shares during the period. Schroder Investment Management Group grew its stake in ARM by 41.7% in the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company's stock valued at $767,611,000 after acquiring an additional 1,396,684 shares during the period. Sustainable Growth Advisers LP grew its stake in shares of ARM by 116.8% in the second quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company's stock valued at $559,171,000 after buying an additional 1,862,626 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of ARM by 12.8% in the second quarter. Bank of America Corp DE now owns 1,476,743 shares of the company's stock valued at $238,848,000 after buying an additional 168,149 shares during the last quarter. Finally, Franklin Resources Inc. raised its stake in ARM by 27.9% in the 2nd quarter. Franklin Resources Inc. now owns 1,417,829 shares of the company's stock valued at $229,320,000 after purchasing an additional 309,698 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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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