ARM (NASDAQ:ARM) Trading 15% Higher – Time to Buy?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded up 15% on Wednesday . The company traded as high as $259.44 and last traded at $256.73. 17,710,378 shares were traded during mid-day trading, an increase of 122% from the average session volume of 7,962,182 shares. The stock had previously closed at $223.15.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Analysts said Nvidia’s bullish comments on Arm-based Vera CPUs support ARM’s growth narrative, with Jefferies reiterating a Buy rating and a $290 price target. Nvidia CPU comments read positively for this chip stock: analyst
• Positive Sentiment: Bernstein initiated coverage with an Outperform rating and a $300 target, highlighting Arm’s potential as AI and custom chip demand expands. Is Arm Holdings (ARM) the Best European Growth Stock to Buy?
• Positive Sentiment: Market commentary continues to frame ARM as a momentum name tied to the AI and CPU renaissance, with investors bidding the shares to fresh highs on expectations for strong profit growth. Arm Holdings (ARM) Hits All-Time High as Profits Seen Rocketing 5x
• Neutral Sentiment: Several insider sales were disclosed this week, including transactions by Charlotte Claire Eaton, CFO Jason Child, William Abbey, and Spencer Collins; most were pre-arranged or routine, but they can still raise valuation caution. SEC filing for insider sales
• Neutral Sentiment: Some recent market commentary says ARM remains a high-momentum stock and a proxy for the AI buildout, which supports the rally but also suggests expectations are elevated. Why Arm Holdings Stock Surged to an All-Time High Today

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Wells Fargo & Company raised their target price on ARM from $220.00 to $255.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Needham & Company LLC raised their target price on ARM from $200.00 to $255.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $150.00 target price (up from $135.00) on shares of ARM in a report on Tuesday, April 7th. Finally, JPMorgan Chase & Co. cut their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating on the stock in a report on Thursday, February 5th. Twenty equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus target price of $208.79.

ARM Stock Performance

The company has a market cap of $323.83 billion, a price-to-earnings ratio of 364.89, a P/E/G ratio of 9.32 and a beta of 3.40. The company has a fifty day moving average of $175.32 and a two-hundred day moving average of $142.53.

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

Insider Activity at ARM

In related news, insider William Abbey sold 5,069 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $257.18, for a total transaction of $1,303,645.42. Following the sale, the insider owned 38,284 shares of the company’s stock, valued at $9,845,879.12. This trade represents a 11.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Spencer Collins sold 40,941 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $215.00, for a total value of $8,802,315.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 264,506 shares of company stock worth $53,198,992 over the last 90 days.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ARM. Capital Research Global Investors bought a new position in ARM during the 3rd quarter worth $243,098,000. Northwestern Mutual Wealth Management Co. raised its position in ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after purchasing an additional 1,610,403 shares during the last quarter. Hyperion Asset Management Ltd bought a new position in ARM during the 3rd quarter worth $202,980,000. Employees Provident Fund Board bought a new position in ARM during the 4th quarter worth $120,241,000. Finally, Arrowstreet Capital Limited Partnership raised its position in ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after purchasing an additional 872,644 shares during the last quarter. 7.53% of the stock is owned by institutional investors.

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.