ARM (NASDAQ:ARM) Trading 2.7% Higher - Here's Why

Key Points

• ARM shares rose 2.7% on Tuesday, trading as high as $214.39 and last at $208.72 on about 7.23 million shares (slightly below average volume).
• Analysts hold a consensus of "Moderate Buy" with an average target of $176.71 (18 Buys, 6 Holds, 1 Sell), and recent notable moves include upgrades from Raymond James and target increases from RBC while JPMorgan cut its target.
• Fundamentals and insider activity: ARM beat quarterly EPS estimates ($0.43) with revenue up 26.3% YoY, has a market cap near $220.5B and a P/E around 278, and insiders have sold 83,712 shares (~$13.6M) in the past 90 days under Rule 10b5‑1 plans.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares traded up 2.7% during trading on Tuesday . The stock traded as high as $214.39 and last traded at $208.7170. 7,226,140 shares changed hands during trading, a decline of 1% from the average session volume of 7,285,562 shares. The stock had previously closed at $203.26.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ARM. Raymond James Financial raised ARM from a "market perform" rating to an "outperform" rating and set a $166.00 price objective on the stock in a research note on Wednesday, March 25th. JPMorgan Chase & Co. lowered their price objective on ARM from $180.00 to $145.00 and set an "overweight" rating on the stock in a research note on Thursday, February 5th. UBS Group decreased their price target on ARM from $175.00 to $170.00 and set a "buy" rating on the stock in a research note on Thursday, February 5th. Barclays reiterated an "overweight" rating and issued a $165.00 price objective on shares of ARM in a report on Thursday, March 26th. Finally, Royal Bank Of Canada boosted their price objective on ARM from $130.00 to $175.00 and gave the company an "outperform" rating in a report on Wednesday, March 25th. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $176.71.

ARM Price Performance

The firm has a 50-day simple moving average of $148.60 and a two-hundred day simple moving average of $137.34. The company has a market cap of $220.51 billion, a PE ratio of 278.29, a P/E/G ratio of 9.52 and a beta of 3.40.

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

Insider Transactions at ARM

In other news, CFO Jason Child sold 21,280 shares of ARM stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total transaction of $3,830,400.00. Following the sale, the chief financial officer directly owned 153,426 shares of the company's stock, valued at approximately $27,616,680. The trade was a 12.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of ARM stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total value of $1,495,744.15. Following the sale, the chief executive officer directly owned 273,680 shares in the company, valued at approximately $44,021,428. The trade was a 3.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 83,712 shares of company stock worth $13,614,730.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Midwest Professional Planners LTD. increased its position in shares of ARM by 1.9% during the first quarter. Midwest Professional Planners LTD. now owns 15,009 shares of the company's stock worth $2,271,000 after acquiring an additional 276 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings in ARM by 4.9% in the first quarter. Geneos Wealth Management Inc. now owns 6,452 shares of the company's stock valued at $976,000 after buying an additional 300 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. bought a new stake in ARM in the first quarter valued at about $431,000. Mandatum Life Insurance Co Ltd bought a new stake in ARM in the first quarter valued at about $2,894,000. Finally, Sigma Planning Corp increased its holdings in ARM by 6.5% in the first quarter. Sigma Planning Corp now owns 2,301 shares of the company's stock valued at $348,000 after buying an additional 140 shares during the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.

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