ARM (NASDAQ:ARM) Stock Price Up 4.9% - What's Next?

Key Points

• ARM shares rose 4.9% to about $297.12, nearing the consensus analyst target of $303.32, though trading volume was 83% below the average session level.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy”; price targets range from $255 to $320, despite Wells Fargo recently lowering its target to $280.
• ARM reported stronger-than-expected quarterly results, including $0.45 EPS and $1.29 billion in revenue, with revenue rising 22.4% year over year; however, the stock trades at a highly elevated P/E ratio above 300.

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s share price was up 4.9% during trading on Tuesday. The stock traded as high as $298.45 and last traded at $297.1160. 1,357,200 shares were traded during mid-day trading, a decline of 83% from the average session volume of 7,763,555 shares. The stock had previously closed at $283.33.

Analyst Upgrades and Downgrades

ARM has been the topic of a number of recent analyst reports. Wells Fargo & Company decreased their target price on shares of ARM from $350.00 to $280.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. Guggenheim reaffirmed a "buy" rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. Benchmark initiated coverage on ARM in a research note on Thursday, July 16th. They set a "hold" rating on the stock. Jefferies Financial Group restated a "buy" rating and set a $320.00 target price on shares of ARM in a report on Monday, July 20th. Finally, Piper Sandler began coverage on ARM in a research report on Wednesday, September 9th. They issued an "overweight" rating and a $320.00 target price for the company. One investment 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 issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $303.32.

ARM Stock Up 5.1%

The stock has a market cap of $317.91 billion, a PE ratio of 306.87, a price-to-earnings-growth ratio of 9.20 and a beta of 3.89. The firm has a fifty day moving average of $264.31 and a 200 day moving average of $256.24.

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

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at $46,032,600. This trade represents a 6.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ARM. QRG Capital Management Inc. lifted its position 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 acquiring an additional 2,330 shares during the period. Envestnet Portfolio Solutions Inc. acquired a new stake in shares of ARM in the 2nd quarter worth approximately $2,755,000. IKE Capital LLC increased its stake in ARM by 88.7% in the 2nd quarter. IKE Capital LLC now owns 5,331 shares of the company's stock valued at $1,890,000 after purchasing an additional 2,506 shares in the last quarter. Capstone Financial Advisors Inc. purchased a new position in ARM in the 2nd quarter valued at approximately $308,000. Finally, MCF Advisors LLC raised its holdings in ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company's stock worth $271,000 after purchasing an additional 80 shares during 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 intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company's offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.

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