ARM (NASDAQ:ARM) Trading Up 3.6% - What's Next?

Key Points

• ARM Holdings PLC's stock price rose 3.6% to $171.50, with about 3.5 million shares traded, significantly below the average volume.
• Analysts generally maintain optimistic views with an average rating of "Moderate Buy" and a target price around $167.43, although Morgan Stanley recently lowered its target from $180.00 to $171.00.
• For the latest quarter, ARM reported earnings of $0.35 per share, beating expectations slightly, with a year-over-year revenue increase of 12.1%.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s share price was up 3.6% on Monday . The company traded as high as $173.04 and last traded at $171.50. Approximately 3,526,299 shares changed hands during trading, a decline of 35% from the average daily volume of 5,389,521 shares. The stock had previously closed at $165.61.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on ARM shares. Rosenblatt Securities reiterated a "buy" rating and set a $180.00 price target on shares of ARM in a research report on Thursday, July 31st. 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. Morgan Stanley lowered their target price on ARM from $180.00 to $171.00 and set an "overweight" rating on the stock in a research report on Thursday, October 9th. The Goldman Sachs Group began coverage on ARM in a research report on Thursday, July 10th. They issued a "neutral" rating and a $160.00 target price on the stock. Finally, Needham & Company LLC restated a "hold" rating on shares of ARM in a research report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, ARM currently has an average rating of "Moderate Buy" and an average price target of $167.43.

ARM Price Performance

The firm has a market cap of $181.19 billion, a price-to-earnings ratio of 259.85, a price-to-earnings-growth ratio of 10.80 and a beta of 4.10. The company has a fifty day moving average price of $146.98 and a two-hundred day moving average price of $137.58.

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

Institutional Investors Weigh In On ARM

Large investors have recently modified their holdings of the stock. Sowell Financial Services LLC bought a new stake in shares of ARM during the 1st quarter worth $229,000. Swedbank AB acquired a new stake in shares of ARM in the first quarter worth $18,667,000. Integrated Wealth Concepts LLC boosted its position in shares of ARM by 24.0% in the first quarter. Integrated Wealth Concepts LLC now owns 10,465 shares of the company's stock worth $1,118,000 after buying an additional 2,025 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of ARM by 12.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 107,728 shares of the company's stock worth $11,505,000 after buying an additional 11,953 shares during the period. Finally, Global X Japan Co. Ltd. boosted its position in shares of ARM by 638.4% in the second quarter. Global X Japan Co. Ltd. now owns 80,239 shares of the company's stock worth $12,978,000 after buying an additional 69,372 shares during the period. 7.53% of the stock is 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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