ARM (NASDAQ:ARM) Trading 2.3% Higher - Here's What Happened

Key Points

• ARM Holdings PLC experienced a 2.3% increase in its share price, trading at $156.22 after reaching a high of $160.54 on Monday.
• Wall Street analysts generally view ARM positively, with the stock receiving one Strong Buy rating, eighteen Buy ratings, and an average target price of $168.52.
• In its latest earnings report, ARM reported $1.05 billion in revenue with a net margin of 16.96%, slightly missing revenue expectations.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s share price shot up 2.3% on Monday . The stock traded as high as $160.54 and last traded at $156.22. 4,910,150 shares traded hands during mid-day trading, a decline of 7% from the average session volume of 5,273,498 shares. The stock had previously closed at $152.64.

Wall Street Analysts Forecast Growth

ARM has been the subject of a number of recent analyst reports. 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 objective for the company. Seaport Res Ptn raised shares of ARM to a "strong-buy" rating in a report on Monday, August 11th. Evercore ISI increased their price objective on shares of ARM from $173.00 to $178.00 and gave the company an "outperform" rating in a report on Thursday, September 11th. TD Cowen lifted their target price on shares of ARM from $155.00 to $175.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of ARM in a research note on Saturday, September 27th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, ARM currently has an average rating of "Moderate Buy" and an average target price of $168.52.

ARM Stock Up 2.3%

The stock has a market capitalization of $165.05 billion, a price-to-earnings ratio of 236.70, a price-to-earnings-growth ratio of 9.28 and a beta of 4.10. The business's 50-day moving average is $142.86 and its two-hundred day moving average is $134.11.

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, 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 business's revenue was up 12.1% on a year-over-year basis. During the same period last year, the company posted $0.40 EPS. As a group, analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently modified their holdings of ARM. Goldman Sachs Group Inc. grew its holdings in shares of ARM by 59.3% in the first quarter. Goldman Sachs Group Inc. now owns 6,574,854 shares of the company's stock valued at $702,129,000 after purchasing an additional 2,446,224 shares during the period. Schroder Investment Management Group boosted its holdings 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 purchasing an additional 1,396,684 shares during the last quarter. Sustainable Growth Advisers LP grew its stake in shares of ARM by 116.8% in the 2nd 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 during the period. Bank of America Corp DE grew its stake in shares of ARM by 12.8% in the 2nd 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 period. Finally, Franklin Resources Inc. increased its holdings in shares of ARM by 27.9% during the 2nd quarter. Franklin Resources Inc. now owns 1,417,829 shares of the company's stock worth $229,320,000 after buying an additional 309,698 shares during the last quarter. 7.53% of the stock is 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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