ARM (NASDAQ:ARM) Share Price Breaks Above 200 Day Moving Average - Here's What Happened

Key Points

• ARM shares broke above their 200-day moving average of $226.25, trading as high as $227.83 and last changing hands at $226.60.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $303.32; recent targets range from $212 to $320.
• ARM beat quarterly expectations with EPS of $0.45 versus $0.40 expected and revenue of $1.29 billion, up 22.4% year over year, although CFO Jason Child sold 10,400 shares under a pre-arranged trading plan.

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $226.25 and traded as high as $227.83. ARM shares last traded at $226.60, with a volume of 3,740,262 shares traded.

Analysts Set New Price Targets

Several brokerages have recently commented on ARM. UBS Group cut their price target on ARM from $360.00 to $320.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Morgan Stanley upped their price objective on shares of ARM from $202.00 to $212.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Guggenheim reiterated a "buy" rating and set a $255.00 target price on shares of ARM in a report on Thursday, July 30th. New Street Research raised shares of ARM from a "neutral" rating to a "buy" rating and set a $260.00 target price on the stock in a research report on Thursday, July 30th. Finally, Piper Sandler initiated coverage on shares of ARM in a research report on Wednesday, September 9th. They set an "overweight" rating and a $320.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $303.32.

ARM Trading Up 1.5%

The firm has a market cap of $242.03 billion, a P/E ratio of 233.61 and a beta of 3.78. The firm has a 50-day simple moving average of $260.38 and a 200-day simple moving average of $226.25.

ARM (NASDAQ:ARM - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.26 billion. The company's revenue was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.35 earnings per share. Research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction dated 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 transaction, the chief financial officer owned 153,442 shares in the company, valued at $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Several hedge funds have recently modified their holdings of the company. Focus Financial Network Inc. grew its position in shares of ARM by 0.9% in the 3rd quarter. Focus Financial Network Inc. now owns 4,686 shares of the company's stock worth $1,357,000 after buying an additional 40 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of ARM by 18.7% during the 2nd quarter. GAMMA Investing LLC now owns 406 shares of the company's stock worth $144,000 after acquiring an additional 64 shares in the last quarter. Allworth Financial LP lifted its position in ARM by 2.9% during the second quarter. Allworth Financial LP now owns 2,269 shares of the company's stock valued at $804,000 after acquiring an additional 65 shares during the last quarter. MCF Advisors LLC lifted its position in ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company's stock valued at $271,000 after acquiring an additional 80 shares during the last quarter. Finally, SteelPeak Wealth LLC lifted its position in ARM by 11.0% during the third quarter. SteelPeak Wealth LLC now owns 931 shares of the company's stock valued at $270,000 after acquiring an additional 92 shares during the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

About ARM

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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