ARM (NASDAQ:ARM) Shares Up 3.7% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price was up 3.7% on Tuesday . The company traded as high as $226.95 and last traded at $223.15. Approximately 11,004,579 shares changed hands during mid-day trading, an increase of 40% from the average daily volume of 7,857,964 shares. The stock had previously closed at $215.12.

Analysts Set New Price Targets

A number of analysts recently weighed in on ARM shares. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Wells Fargo & Company raised their target price on shares of ARM from $220.00 to $255.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Finally, HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and raised their target price for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Twenty equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $203.79.

ARM Price Performance

The company’s fifty day simple moving average is $166.81 and its 200-day simple moving average is $140.61. The firm has a market capitalization of $235.76 billion, a PE ratio of 265.65, a price-to-earnings-growth ratio of 7.60 and a beta of 3.40.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The firm had revenue of $1.49 billion during the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. As a group, equities research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insider Transactions at ARM

In other news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares in the company, valued at approximately $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Rene A. Haas sold 9,299 shares of ARM stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total transaction of $1,495,744.15. Following the sale, the chief executive officer owned 273,680 shares of the company’s stock, valued at $44,021,428. The trade was a 3.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 135,673 shares of company stock worth $24,616,433.

Institutional Investors Weigh In On ARM

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Compound Planning Inc. lifted its stake in shares of ARM by 4.6% during the third quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after buying an additional 69 shares during the period. Ritholtz Wealth Management boosted its holdings in ARM by 3.0% in the third quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock valued at $345,000 after purchasing an additional 70 shares during the last quarter. Rathbones Group PLC boosted its holdings in ARM by 0.7% in the third quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after purchasing an additional 70 shares during the last quarter. Nwam LLC boosted its holdings in ARM by 4.3% in the third quarter. Nwam LLC now owns 1,711 shares of the company’s stock valued at $242,000 after purchasing an additional 71 shares during the last quarter. Finally, Kovack Advisors Inc. boosted its holdings in ARM by 2.0% in the third quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock valued at $510,000 after purchasing an additional 72 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

Arm Limited (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.