ARM (NASDAQ:ARM) Stock Jumps 4.1% – Here’s Why

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

Wall Street Analysts Forecast Growth

Several analysts have commented on ARM shares. UBS Group decreased their price target on shares of ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Raymond James Financial restated an “outperform” rating and set a $166.00 price objective on shares of ARM in a research report on Tuesday, August 25th. Morgan Stanley lifted their target price on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Royal Bank Of Canada decreased their target price on ARM from $475.00 to $340.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Finally, Susquehanna boosted their target price on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $303.32.

ARM Trading Down 10.0%

The company has a 50-day simple moving average of $258.73 and a 200 day simple moving average of $227.92. The company has a market cap of $219.99 billion, a P/E ratio of 212.34, a P/E/G ratio of 7.00 and a beta of 3.78.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the firm earned $0.35 EPS. The company’s revenue for the quarter was up 22.4% compared to the same quarter last year. On average, equities analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insider Activity at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM 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 of the company’s stock, valued at $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Rakuten Investment Management Inc. purchased a new stake in shares of ARM during the 3rd quarter valued at approximately $17,727,000. Provenance Wealth Advisors LLC acquired a new position in ARM in the third quarter valued at approximately $522,000. Factory Mutual Insurance Co. grew its position in ARM by 61.3% in the third quarter. Factory Mutual Insurance Co. now owns 17,900 shares of the company’s stock worth $5,185,000 after acquiring an additional 6,800 shares during the period. BOCHK Asset Management Ltd grew its position in ARM by 205.0% in the third quarter. BOCHK Asset Management Ltd now owns 20,432 shares of the company’s stock worth $5,918,000 after acquiring an additional 13,732 shares during the period. Finally, Signature Equity Partners LLC grew its position in ARM by 89.1% in the third quarter. Signature Equity Partners LLC now owns 1,917 shares of the company’s stock worth $555,000 after acquiring an additional 903 shares during the period. 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.