ARM (NASDAQ:ARM) Trading Up 1.5% - Should You Buy?

Key Points

• ARM Holdings PLC shares rose 1.5% during trading, closing at $170.67 with a trading volume that exceeded the daily average by 36%.
• Various analysts have set target prices for ARM, with UBS and Wells Fargo both maintaining "buy" ratings, while Goldman Sachs initiated coverage with a "neutral" rating and a target of $160.00.
• The company reported earnings of $0.35 per share for the last quarter, which was above analysts’ expectations, highlighting a 12.1% revenue growth compared to the same quarter last year.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) were up 1.5% during trading on Wednesday . The stock traded as high as $174.00 and last traded at $170.67. Approximately 7,344,477 shares were traded during trading, an increase of 36% from the average daily volume of 5,405,035 shares. The stock had previously closed at $168.16.

Wall Street Analysts Forecast Growth

ARM has been the topic of a number of recent analyst reports. UBS Group lowered their target price on ARM from $185.00 to $175.00 and set a "buy" rating on the stock in a research note on Thursday, July 31st. TD Cowen lifted their target price on ARM from $155.00 to $175.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Guggenheim lifted their target price on ARM from $147.00 to $187.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. The Goldman Sachs Group initiated coverage on ARM in a research note on Thursday, July 10th. They set a "neutral" rating and a $160.00 target price on the stock. Finally, Wells Fargo & Company lifted their target price on ARM from $145.00 to $175.00 and gave the stock an "overweight" rating in a research note on Monday, July 21st. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $167.43.

ARM Price Performance

The company has a market cap of $180.31 billion, a PE ratio of 258.59, a price-to-earnings-growth ratio of 11.21 and a beta of 4.10. The company has a fifty day moving average price of $145.04 and a 200 day moving average price of $136.01.

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. 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 quarter in the previous year, the company posted $0.40 EPS. ARM's quarterly revenue was up 12.1% compared to the same quarter last year. As a group, sell-side analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Hedge Funds Weigh In On ARM

Hedge funds have recently made changes to their positions in the business. Goldman Sachs Group Inc. grew its stake in ARM by 59.3% in the first quarter. Goldman Sachs Group Inc. now owns 6,574,854 shares of the company's stock worth $702,129,000 after purchasing an additional 2,446,224 shares during the period. Schroder Investment Management Group grew its stake in shares of ARM by 41.7% in the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company's stock worth $767,611,000 after acquiring 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 second quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company's stock worth $559,171,000 after acquiring an additional 1,862,626 shares during the last quarter. Bank of America Corp DE grew its stake 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 worth $238,848,000 after acquiring an additional 168,149 shares during the last quarter. Finally, Franklin Resources Inc. grew its stake in shares of ARM by 27.9% in the second quarter. Franklin Resources Inc. now owns 1,417,829 shares of the company's stock worth $229,320,000 after acquiring an additional 309,698 shares during the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

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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