ARM Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report) traded up 3.7% during mid-day trading on Tuesday . The stock traded as high as $226.95 and last traded at $223.15. 11,004,579 shares were traded during trading, an increase of 40% from the average session volume of 7,857,964 shares. The stock had previously closed at $215.12.
Key Stories Impacting ARM
Here are the key news stories impacting ARM this week:
- Positive Sentiment: Jefferies said Nvidia’s bullish comments on its Arm-based Vera CPU business are a positive signal for ARM, reiterating a Buy rating and $290 price target. Article: Nvidia CPU comments read positively for this chip stock: analyst
- Positive Sentiment: Bernstein initiated coverage with an Outperform rating and a $300 price target, highlighting Arm’s upside in CPUs and chip IP as AI infrastructure spending grows. Article: What Is Going On With Arm Stock On Wednesday?
- Positive Sentiment: Multiple reports said ARM rallied on renewed AI optimism, with investors viewing the company as a core pick in custom silicon and AI-related semiconductor spending. Article: Why Arm Holdings Stock Surged to an All-Time High Today
- Neutral Sentiment: Several insiders, including CFO Jason Child, disclosed stock sales. Some were tied to pre-arranged 10b5-1 plans or tax withholding on vested awards, so they are not necessarily a negative operating signal.
- Neutral Sentiment: There is also ongoing chatter about a possible U.S. antitrust probe, which adds uncertainty but is still early-stage and not a confirmed finding.
Wall Street Analyst Weigh In
Several analysts have issued reports on the stock. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM 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. Jefferies Financial Group set a $290.00 price target on shares of ARM in a research report on Thursday. Finally, Benchmark reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, February 5th. Twenty investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $208.79.
ARM Price Performance
The company has a market capitalization of $315.08 billion, a P/E ratio of 355.04, a price-to-earnings-growth ratio of 9.32 and a beta of 3.40. The company’s 50-day moving average price is $175.32 and its two-hundred day moving average price is $142.53.
ARM (NASDAQ:ARM – Get Free Report) last issued its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. On average, analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.
Insider Buying and Selling
In other news, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the transaction, the insider directly owned 5,543 shares of the company’s stock, valued at $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the stock in a transaction dated 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 transaction, the insider directly owned 51,125 shares in the company, valued at $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 264,506 shares of company stock valued at $53,198,992.
Hedge Funds Weigh In On ARM
Several institutional investors and hedge funds have recently modified their holdings of the business. BankChampaign National Association acquired a new position in shares of ARM in the first quarter valued at about $510,000. Groupe la Francaise grew its stake in shares of ARM by 62.9% in the first quarter. Groupe la Francaise now owns 41,953 shares of the company’s stock valued at $6,309,000 after acquiring an additional 16,201 shares in the last quarter. Liontrust Investment Partners LLP grew its stake in shares of ARM by 139.7% in the first quarter. Liontrust Investment Partners LLP now owns 347,339 shares of the company’s stock valued at $52,545,000 after acquiring an additional 202,410 shares in the last quarter. Leigh Baldwin & CO. LLC acquired a new position in shares of ARM in the first quarter valued at about $247,000. Finally, Western Wealth Management LLC acquired a new position in shares of ARM in the first quarter valued at about $179,000. 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.
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