ARM (NASDAQ:ARM) Stock Price Up 1.7% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 1.7% during trading on Thursday . The company traded as high as $267.69 and last traded at $255.21. Approximately 4,857,891 shares traded hands during trading, a decline of 40% from the average daily volume of 8,100,679 shares. The stock had previously closed at $251.06.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Rosenblatt Securities decreased their price objective on shares of ARM from $270.00 to $250.00 and set a “buy” rating for the company in a research report on Friday, July 31st. Bank of America reissued a “neutral” rating on shares of ARM in a report on Thursday, July 30th. New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target on the stock in a report on Thursday, July 30th. Wells Fargo & Company dropped their price objective on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, HSBC lowered shares of ARM from a “buy” rating to a “hold” rating and lifted their target price for the company from $255.00 to $315.00 in a research report on Tuesday, July 14th. Eighteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and an average target price of $305.12.

ARM Stock Up 1.7%

The stock has a market capitalization of $272.58 billion, a price-to-earnings ratio of 263.11, a PEG ratio of 7.16 and a beta of 3.90. The company’s 50-day moving average is $293.07 and its 200-day moving average is $233.08.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the prior year, the firm posted $0.35 earnings per share. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. Sell-side analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Activity at ARM

In related news, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the completion of the transaction, the chief accounting officer directly owned 12,135 shares in the company, valued at $4,765,414.50. This trade represents a 48.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction that occurred on 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 directly owned 20,563 shares of the company’s stock, valued at approximately $8,281,131.36. The trade was a 24.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Azimuth Capital Investment Management LLC acquired a new position in shares of ARM during the second quarter worth about $8,795,000. William John Sempolinski purchased a new stake in ARM in the second quarter valued at $639,000. Raiffeisen Bank International AG acquired a new stake in shares of ARM in the 2nd quarter valued at about $610,000. Knollwood Investment Advisory LLC purchased a new stake in ARM in the 2nd quarter valued at $232,000. Finally, TD Waterhouse Canada Inc. raised its holdings in shares of ARM by 0.5% in the second quarter. TD Waterhouse Canada Inc. now owns 18,674 shares of the company’s stock valued at $6,309,000 after buying an additional 102 shares during the last quarter. 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.