ARM (NASDAQ:ARM) Shares Climb 4.1% - Here's What Happened

Key Points

• ARM shares rose 4.1% to $235.90 in mid-day trading, although trading volume was 48% below the stock’s average daily volume.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $303.32.
• ARM’s latest quarterly results beat expectations: adjusted earnings were $0.45 per share versus $0.40 expected, while revenue reached $1.29 billion, up 22.4% year over year.

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price was up 4.1% during mid-day trading on Wednesday. The company traded as high as $237.88 and last traded at $235.90. 3,900,076 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 7,459,393 shares. The stock had previously closed at $226.60.

Analysts Set New Price Targets

ARM has been the subject of several analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of ARM in a research note on Thursday, October 15th. Raymond James Financial restated an "outperform" rating and set a $166.00 target price on shares of ARM in a research note on Tuesday, August 25th. Guggenheim reaffirmed a "buy" rating and issued a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Wells Fargo & Company decreased their price target on shares of ARM from $350.00 to $280.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Benchmark assumed coverage on shares of ARM in a research note on Thursday, July 16th. They issued a "hold" rating for the company. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $303.32.

ARM Stock Up 4.1%

The business's fifty day simple moving average is $260.38 and its two-hundred day simple moving average is $226.25. The company has a market cap of $251.96 billion, a price-to-earnings ratio of 243.20, a PEG ratio of 6.24 and a beta of 3.78.

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

Insider Activity at ARM

In other news, CFO Jason Child sold 10,400 shares of the firm's stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

A number of hedge funds and other institutional investors have recently made changes to their positions in ARM. QRG Capital Management Inc. raised its holdings in shares of ARM by 32.1% during the 2nd quarter. QRG Capital Management Inc. now owns 9,591 shares of the company's stock valued at $3,401,000 after buying an additional 2,330 shares during the period. Envestnet Portfolio Solutions Inc. purchased a new position in ARM in the 2nd quarter worth approximately $2,755,000. BlueCrest Capital Management Ltd purchased a new position in ARM in the 2nd quarter worth approximately $1,359,000. Public Employees Retirement System of Ohio acquired a new stake in ARM in the second quarter valued at approximately $38,280,000. Finally, Swedbank AB grew its position in ARM by 15.7% in the first quarter. Swedbank AB now owns 421,000 shares of the company's stock valued at $63,689,000 after acquiring an additional 57,000 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company's stock.

ARM Company 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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