ARM (NASDAQ:ARM) Trading Up 2.3% - Still a Buy?

Key Points

• ARM Holdings' share price increased by 2.3% to last trade at $170.66, significantly above its previous close of $166.77, with trading volume also rising by 63%.
• Analysts have mixed ratings on ARM, with one strong buy, eighteen buys, seven holds, and one sell, leading to an average rating of Moderate Buy and a consensus price target of $167.43.
• The company reported earnings of $0.35 EPS for the quarter, surpassing expectations, despite a 12.1% revenue increase from the same period last year.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s share price was up 2.3% during mid-day trading on Thursday . The company traded as high as $171.86 and last traded at $170.66. Approximately 8,656,831 shares traded hands during mid-day trading, an increase of 63% from the average daily volume of 5,307,548 shares. The stock had previously closed at $166.77.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on ARM shares. Rosenblatt Securities reaffirmed a "buy" rating and issued a $180.00 price target on shares of ARM in a report on Thursday, July 31st. UBS Group cut their price target on ARM from $185.00 to $175.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Wells Fargo & Company boosted their price objective on ARM from $145.00 to $175.00 and gave the stock an "overweight" rating in a report on Monday, July 21st. Seaport Res Ptn raised ARM to a "strong-buy" rating in a report on Monday, August 11th. Finally, The Goldman Sachs Group initiated coverage on ARM in a report on Thursday, July 10th. They set a "neutral" rating and a $160.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, ARM presently has an average rating of "Moderate Buy" and a consensus price target of $167.43.

ARM Trading Up 2.3%

The business has a 50 day moving average price of $143.43 and a 200 day moving average price of $134.83. The company has a market capitalization of $180.30 billion, a P/E ratio of 258.58, a PEG ratio of 10.14 and a beta of 4.10.

ARM (NASDAQ:ARM - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.35 earnings per share (EPS) 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 business had revenue of $1.05 billion during the quarter, compared to analysts' expectations of $1.06 billion. During the same period in the prior year, the business earned $0.40 EPS. ARM's revenue for the quarter was up 12.1% compared to the same quarter last year. On average, analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of the company. GAMMA Investing LLC boosted its holdings in shares of ARM by 126.0% in the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company's stock valued at $25,000 after buying an additional 97 shares during the last quarter. Huntington National Bank acquired a new stake in shares of ARM during the second quarter worth $30,000. FWL Investment Management LLC acquired a new stake in shares of ARM during the second quarter worth $34,000. Oliver Lagore Vanvalin Investment Group acquired a new stake in shares of ARM during the second quarter worth $39,000. Finally, Brooklyn Investment Group acquired a new stake in shares of ARM during the first quarter worth $28,000. Institutional investors and hedge funds own 7.53% of the company's stock.

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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