ARM (NASDAQ:ARM) Trading Up 1.2% - What's Next?

Key Points

• ARM shares rose 1.2% to $241.56, with trading volume 57% below the average. The stock has a market capitalization of approximately $258 billion and a high P/E ratio of 249.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $305.12; Barclays raised its target to $360, while HSBC downgraded the stock to “hold.”
• ARM exceeded quarterly expectations, reporting $0.45 in EPS and $1.29 billion in revenue, with revenue up 22.4% year over year. Insiders sold 22,072 shares worth approximately $8.5 million over the past 90 days.

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) traded up 1.2% on Tuesday . The stock traded as high as $247.99 and last traded at $241.56. Approximately 3,477,185 shares changed hands during trading, a decline of 57% from the average daily volume of 8,145,433 shares. The stock had previously closed at $238.78.

Analysts Set New Price Targets

A number of equities analysts have commented on ARM shares. Raymond James Financial reissued an "outperform" rating on shares of ARM in a report on Tuesday. Barclays lifted their price target on ARM from $250.00 to $360.00 and gave the stock an "overweight" rating in a research note on Monday, June 1st. Bank of America reissued a "neutral" rating on shares of ARM in a research note on Thursday, July 30th. Benchmark started coverage on shares of ARM in a research note on Thursday, July 16th. They set a "hold" rating for the company. Finally, HSBC lowered shares of ARM from a "buy" rating to a "hold" rating and raised their target price for the stock from $255.00 to $315.00 in a research note on Tuesday, July 14th. Eighteen equities research analysts have rated the stock with 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.com, ARM has a consensus rating of "Moderate Buy" and a consensus price target of $305.12.

ARM Stock Performance

The company has a market capitalization of $258.01 billion, a PE ratio of 249.03, a P/E/G ratio of 7.21 and a beta of 3.91. The stock's 50-day simple moving average is $299.52 and its 200 day simple moving average is $231.13.

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 the consensus estimate of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same quarter last year, the company posted $0.35 earnings per share. The business's quarterly revenue was up 22.4% compared to the same quarter last year. On average, analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Transactions at ARM

In other ARM news, insider William Abbey sold 6,566 shares of ARM stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the transaction, the insider owned 20,563 shares in the company, valued at approximately $8,281,131.36. The trade was a 24.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares in the company, valued at $4,765,414.50. This represents a 48.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 22,072 shares of company stock valued at $8,528,128.

Institutional Investors Weigh In On ARM

Several hedge funds have recently modified their holdings of the company. Syntax Research Inc. acquired a new position in ARM in the 1st quarter valued at $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in ARM in the first quarter valued at $30,000. Mcguire Capital Advisors Inc. purchased a new position in ARM during the fourth quarter worth about $30,000. Navalign LLC purchased a new stake in ARM in the fourth quarter valued at approximately $33,000. Finally, FWL Investment Management LLC acquired a new position in ARM during the second quarter worth approximately $34,000. 7.53% of the stock is owned by institutional investors and hedge funds.

ARM Company Profile

Arm Holdings NASDAQ: ARM is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.

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