ARM (NASDAQ:ARM) Stock Jumps 1.5% – Time to Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 1.5% on Tuesday. The stock traded as high as $227.83 and last traded at $226.60. 3,730,268 shares changed hands during trading, a decline of 50% from the average daily volume of 7,480,123 shares. The stock had previously closed at $223.35.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Bank of America restated a “neutral” rating and issued a $335.00 price target (up from $245.00) on shares of ARM in a research report on Thursday, July 30th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $320.00 price target on shares of ARM in a report on Monday, July 20th. KeyCorp increased their price objective on ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Finally, TD Cowen reduced their price objective on ARM from $475.00 to $350.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Trading Up 1.5%

The stock has a market cap of $242.03 billion, a price-to-earnings ratio of 233.61, a P/E/G ratio of 6.24 and a beta of 3.78. The company has a fifty day simple moving average of $262.40 and a 200-day simple moving average of $225.15.

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

Insider Buying and Selling

In related news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of hedge funds have recently modified their holdings of ARM. Arrowstreet Capital Limited Partnership boosted its position in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares during the period. Janus Henderson Group PLC purchased a new stake in ARM in the 1st quarter worth about $116,112,000. Hyperion Asset Management Ltd lifted its stake in ARM by 36.9% in the 3rd quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock worth $210,662,000 after acquiring an additional 195,942 shares in the last quarter. Altshuler Shaham Ltd lifted its stake in ARM by 202.6% in the 1st quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company’s stock worth $72,356,000 after acquiring an additional 320,236 shares in the last quarter. Finally, Sei Investments Co. boosted its position in ARM by 67.5% during the 1st quarter. Sei Investments Co. now owns 454,220 shares of the company’s stock worth $68,714,000 after acquiring an additional 183,045 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.