ARM (NASDAQ:ARM) Stock Price Up 1.5% - Time to Buy?

Key Points

• ARM shares rose 1.5% to $226.60, with trading volume roughly half its average session volume. The stock trades below its 50-day moving average of $262.40 but near its 200-day average of $225.15.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $303.32, although several firms recently lowered targets while maintaining buy ratings.
• ARM exceeded quarterly expectations with $0.45 EPS and $1.29 billion in revenue, representing 22.4% year-over-year growth. However, its valuation remains elevated, with a P/E ratio above 233 and a PEG ratio of 6.24.

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price shot up 1.5% during trading on Tuesday. The stock traded as high as $227.83 and last traded at $226.60. Approximately 3,730,268 shares changed hands during trading, a decline of 50% from the average session volume of 7,480,123 shares. The stock had previously closed at $223.35.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Bank of America reiterated a "neutral" rating and set a $335.00 price target (up from $245.00) on shares of ARM in a research report on Thursday, July 30th. Guggenheim restated a "buy" rating and set a $255.00 price objective on shares of ARM in a research report on Thursday, July 30th. Benchmark started coverage on ARM in a research note on Thursday, July 16th. They set a "hold" rating for the company. Rosenblatt Securities dropped their target price on ARM from $270.00 to $250.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Finally, TD Cowen dropped their target price on ARM from $475.00 to $350.00 and set a "buy" rating 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 assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $303.32.

ARM Price Performance

The stock has a fifty day moving average price of $262.40 and a two-hundred day moving average price of $225.15. The company has a market cap of $242.03 billion, a P/E ratio of 233.61, a PEG ratio of 6.24 and a beta of 3.78.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.40 by $0.05. The business had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%. The business's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.35 EPS. As a group, analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Activity at ARM

In other news, CFO Jason Child sold 10,400 shares of the firm's stock in a transaction on Monday, September 21st. The stock was 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 of the company's stock, 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

A number of institutional investors and hedge funds have recently bought and sold shares of ARM. M & L Capital Management Ltd bought a new position in shares of ARM in the third quarter valued at approximately $26,736,000. Asset Management One Co. Ltd. lifted its position in ARM by 76.1% in the third quarter. Asset Management One Co. Ltd. now owns 19,216 shares of the company's stock worth $5,566,000 after purchasing an additional 8,305 shares during the period. Total Clarity Wealth Management Inc. boosted its stake in ARM by 86.2% during the 3rd quarter. Total Clarity Wealth Management Inc. now owns 2,449 shares of the company's stock valued at $709,000 after purchasing an additional 1,134 shares in the last quarter. Oppenheimer & Co. Inc. boosted its stake in ARM by 28.6% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 45,623 shares of the company's stock valued at $13,215,000 after purchasing an additional 10,151 shares in the last quarter. Finally, Signaturefd LLC raised its stake in shares of ARM by 83.5% in the 3rd quarter. Signaturefd LLC now owns 1,090 shares of the company's stock worth $316,000 after buying an additional 496 shares in the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.