ARM (NASDAQ:ARM) Trading Up 17.4% - Time to Buy?

Key Points

• ARM shares surged 17.4% to $280.56, with trading volume 13% above average. The stock’s market capitalization reached approximately $299.7 billion, though its valuation remains elevated at a P/E ratio near 289.
• ARM exceeded quarterly expectations, reporting $0.45 in adjusted EPS versus $0.40 expected and $1.29 billion in revenue, up 22.4% year over year. Analysts maintain a “Moderate Buy” consensus, with an average price target of $285.33.
• Insiders sold 216,049 shares worth roughly $52.1 million over the past 90 days, while institutional and hedge-fund ownership stands at 7.53%. Analyst views remain mostly positive, with 18 Buy ratings, seven Holds and one Sell.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares were up 17.4% during trading on Tuesday . The company traded as high as $283.27 and last traded at $280.56. Approximately 9,685,416 shares changed hands during trading, an increase of 13% from the average daily volume of 8,586,719 shares. The stock had previously closed at $239.06.

Wall Street Analyst Weigh In

Several analysts have recently commented on ARM shares. Jefferies Financial Group reissued a "buy" rating and issued a $320.00 price objective on shares of ARM in a research note on Monday, July 20th. TD Cowen lowered their price target on ARM from $475.00 to $350.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Morgan Stanley increased their price target on ARM from $202.00 to $212.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Weiss Ratings restated a "hold (c)" rating on shares of ARM in a research note on Friday, July 17th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $255.00 price objective on shares of ARM in a report on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $285.33.

ARM Trading Up 17.4%

The stock's fifty day moving average is $327.29 and its two-hundred day moving average is $214.54. The company has a market capitalization of $299.66 billion, a PE ratio of 289.24, a P/E/G ratio of 7.12 and a beta of 3.91.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm's revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.35 earnings per share. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. As a group, analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Activity

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of ARM stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the sale, the insider owned 5,543 shares of the company's stock, valued at approximately $1,159,318.45. The trade was a 81.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the transaction, the insider owned 51,125 shares in the company, valued at approximately $10,824,696.25. The trade was a 50.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 216,049 shares of company stock worth $52,101,605.

Institutional Trading of ARM

A number of large investors have recently bought and sold shares of ARM. GoalFusion Wealth Management LLC bought a new stake in shares of ARM in the second quarter valued at $321,000. Redhawk Wealth Advisors Inc. bought a new position in shares of ARM during the 2nd quarter worth $375,000. Wealthcare Advisory Partners LLC purchased a new stake in ARM in the 2nd quarter worth about $326,000. First Bank & Trust purchased a new stake in ARM in the 2nd quarter worth about $274,000. Finally, Vertrix Wealth Management LLC purchased a new stake in ARM in the 2nd quarter worth about $292,000. 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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