Arm Holdings PLC Sponsored ADR $ARM Stock: Hyperion Asset Management Ltd Grows Holdings

Key Points

• Hyperion Asset Management increased its Arm Holdings position by 36.9% in the third quarter, bringing its holdings to 727,273 shares valued at approximately $210.7 million. Institutional investors collectively own 7.53% of ARM.
• ARM shares fell 2.1% to $223.15, well below their 50-day and 200-day moving averages. The stock has a market capitalization of $238.3 billion and trades at a highly elevated P/E ratio of 230.
• Arm reported quarterly revenue of $1.29 billion and EPS of $0.45, beating analyst expectations, while revenue grew 22.4% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $303.32.

Hyperion Asset Management Ltd grew its position in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 36.9% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 727,273 shares of the company's stock after purchasing an additional 195,942 shares during the quarter. ARM makes up about 5.8% of Hyperion Asset Management Ltd's holdings, making the stock its 8th largest position. Hyperion Asset Management Ltd owned 0.07% of ARM worth $210,662,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in ARM. Arrowstreet Capital Limited Partnership boosted its position in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company's stock valued at $142,983,000 after purchasing an additional 872,644 shares during the period. Janus Henderson Group PLC acquired a new position in ARM during the first quarter worth approximately $116,112,000. SG Americas Securities LLC lifted its stake in ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company's stock valued at $146,903,000 after buying an additional 705,459 shares during the last quarter. Altshuler Shaham Ltd lifted its stake in ARM by 202.6% in the first quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company's stock valued at $72,356,000 after buying an additional 320,236 shares during the last quarter. Finally, Liontrust Investment Partners LLP lifted its stake in ARM by 139.7% in the first quarter. Liontrust Investment Partners LLP now owns 347,339 shares of the company's stock valued at $52,545,000 after buying an additional 202,410 shares during the last quarter. Institutional investors and hedge funds own 7.53% of the company's stock.

ARM Stock Down 2.1%

NASDAQ:ARM traded down $4.90 during midday trading on Tuesday, reaching $223.15. The stock had a trading volume of 3,170,200 shares, compared to its average volume of 7,556,537. The firm has a fifty day simple moving average of $266.47 and a two-hundred day simple moving average of $270.79. Arm Holdings PLC Sponsored ADR has a 12-month low of $100.02 and a 12-month high of $452.70. The stock has a market cap of $238.34 billion, a P/E ratio of 230.05, a P/E/G ratio of 6.76 and a beta of 3.78.

ARM (NASDAQ:ARM - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. ARM's quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.35 EPS. On average, sell-side analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on ARM shares. Raymond James Financial restated an "outperform" rating and set a $166.00 target price on shares of ARM in a research report on Tuesday, August 25th. Morgan Stanley lifted their target price on shares of ARM from $202.00 to $212.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Susquehanna upped their price target on shares of ARM from $300.00 to $320.00 and gave the company a "positive" rating in a research report on Tuesday, July 21st. Bank of America reissued a "neutral" rating and set a $335.00 price objective (up from $245.00) on shares of ARM in a research report on Thursday, July 30th. Finally, New Street Research raised shares of ARM from a "neutral" rating to a "buy" rating and set a $260.00 price objective on the stock in a research report on Thursday, July 30th. One equities research 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $303.32.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the sale, the chief financial officer owned 153,442 shares of the company's stock, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ARM Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company's offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.

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