ARM (NASDAQ:ARM) Trading Up 2.8% - Here's What Happened

Key Points

• ARM shares rose 2.8% on Monday, trading as high as $346.15 before ending near $343.58. Volume was slightly below average, with about 8.34 million shares changing hands.
• Several analysts turned more bullish on the stock, including Wells Fargo, TD Cowen, HSBC, and UBS, all lifting targets or ratings. ARM now has a consensus rating of Moderate Buy with an average price target of $279.83.
• The stock has had a strong run, supported by a $366.97 billion market cap, but it also trades at a very rich valuation with a P/E ratio of 409.02. Recent insider selling totaled 248,205 shares over 90 days, though some sales were tied to tax withholding and pre-arranged plans.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) rose 2.8% on Monday . The stock traded as high as $346.15 and last traded at $343.58. Approximately 8,343,041 shares changed hands during mid-day trading, a decline of 8% from the average session volume of 9,029,826 shares. The stock had previously closed at $334.27.

Wall Street Analyst Weigh In

Several research analysts have issued reports on ARM shares. Wells Fargo & Company increased their target price on shares of ARM from $255.00 to $410.00 and gave the stock an "overweight" rating in a report on Monday, June 1st. TD Cowen boosted their price target on shares of ARM from $265.00 to $475.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. HSBC raised shares of ARM from a "reduce" rating to a "buy" rating and upped their price target for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Weiss Ratings reiterated a "hold (c)" rating on shares of ARM in a research note on Monday, April 20th. Finally, UBS Group lifted their price objective on shares of ARM from $260.00 to $470.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. Nineteen equities research 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 company currently has an average rating of "Moderate Buy" and a consensus price target of $279.83.

ARM Stock Performance

The business has a 50 day moving average of $291.90 and a two-hundred day moving average of $183.36. The stock has a market capitalization of $366.97 billion, a PE ratio of 409.02, a PEG ratio of 12.14 and a beta of 3.77.

ARM (NASDAQ:ARM - Get Free Report) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. On average, equities analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Transactions at ARM

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the business's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider owned 5,543 shares in the company, valued at $1,159,318.45. The trade was a 81.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jason Child sold 31,920 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares of the company's stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 248,205 shares of company stock worth $57,741,572.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Morgan Stanley raised its stake in ARM by 1.2% in the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company's stock valued at $413,521,000 after buying an additional 45,314 shares during the last quarter. Invesco Ltd. grew its stake in shares of ARM by 36.9% during the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company's stock worth $265,279,000 after acquiring an additional 654,727 shares during the last quarter. Coatue Management LLC increased its holdings in shares of ARM by 1.8% during the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company's stock valued at $251,413,000 after acquiring an additional 40,174 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of ARM by 41.6% during the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company's stock valued at $234,925,000 after acquiring an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group raised its position in shares of ARM by 11.0% in the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company's stock valued at $206,739,000 after purchasing an additional 187,035 shares during the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

About ARM

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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