ARM (NASDAQ:ARM) Trading Up 2.4% - Still a Buy?

Key Points

• ARM Holdings PLC shares surged 2.4% to $170.68, with trading volume down 32% from average levels.
• Several analysts have upgraded ARM, with TD Cowen raising the target price to $175.00 and one analyst assigning a "Strong Buy" rating.
• The company's quarterly earnings report showed an EPS of $0.35, beating expectations, with revenues increasing 12.1% year-over-year.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares were up 2.4% during trading on Friday . The stock traded as high as $174.45 and last traded at $170.68. Approximately 3,653,432 shares were traded during mid-day trading, a decline of 32% from the average daily volume of 5,360,368 shares. The stock had previously closed at $166.60.

Analyst Upgrades and Downgrades

Several analysts recently commented on ARM shares. TD Cowen raised their target price on ARM from $155.00 to $175.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Needham & Company LLC restated a "hold" rating on shares of ARM in a research report on Thursday, July 31st. 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 report on Thursday, July 31st. Evercore ISI lifted their price target on ARM from $173.00 to $178.00 and gave the company an "outperform" rating in a research report on Thursday, September 11th. Finally, Seaport Res Ptn upgraded ARM to a "strong-buy" rating in a research report on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $168.14.

ARM Stock Up 2.4%

The stock has a market cap of $180.33 billion, a price-to-earnings ratio of 258.61, a PEG ratio of 10.41 and a beta of 4.10. The business has a 50-day moving average of $149.14 and a 200-day moving average of $139.11.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.01. The firm had revenue of $1.05 billion during the quarter, compared to analysts' expectations of $1.06 billion. ARM had a return on equity of 15.56% and a net margin of 16.96%.The business's revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.40 earnings per share. Equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

Several institutional investors have recently bought and sold shares of ARM. GAMMA Investing LLC raised its holdings in ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company's stock valued at $25,000 after buying an additional 97 shares in the last quarter. TFC Financial Management Inc. raised its holdings in ARM by 163.4% during the first quarter. TFC Financial Management Inc. now owns 266 shares of the company's stock valued at $28,000 after buying an additional 165 shares in the last quarter. Brooklyn Investment Group bought a new position in ARM during the first quarter valued at about $28,000. Huntington National Bank bought a new position in ARM during the second quarter valued at about $30,000. Finally, N.E.W. Advisory Services LLC bought a new position in ARM during the first quarter valued at about $34,000. 7.53% of the stock is currently owned by 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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