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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 4.1% on Thursday . The stock traded as high as $210.80 and last traded at $204.61. 16,374,811 shares changed hands during trading, an increase of 134% from the average session volume of 6,996,535 shares. The stock had previously closed at $196.57.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. HSBC upgraded ARM from a “reduce” rating to a “buy” rating and increased their price target for the stock from $90.00 to $205.00 in a research note on Friday, March 20th. The Goldman Sachs Group increased their price target on ARM from $110.00 to $125.00 and gave the stock a “sell” rating in a research note on Thursday, April 9th. Benchmark reissued a “hold” rating on shares of ARM in a report on Thursday, February 5th. Barclays reissued an “overweight” rating and issued a $165.00 price target on shares of ARM in a report on Thursday, March 26th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a report on Monday. Eighteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $174.83.

ARM Stock Up 4.1%

The company has a market capitalization of $216.17 billion, a PE ratio of 272.81, a PEG ratio of 7.91 and a beta of 3.33. The company’s 50 day moving average is $138.35 and its two-hundred day moving average is $135.56.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm’s revenue for the quarter was up 26.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.39 earnings per share. Analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.85 EPS for the current year.

Insider Transactions at ARM

In related news, CEO Rene A. Haas sold 9,299 shares of the firm’s stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $160.85, for a total value of $1,495,744.15. Following the completion of the transaction, the chief executive officer directly owned 273,680 shares of the company’s stock, valued at approximately $44,021,428. This trade represents a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jason Child sold 21,280 shares of the firm’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the transaction, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 62,432 shares of company stock worth $9,784,330 over the last quarter.

Hedge Funds Weigh In On ARM

Institutional investors and hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC grew its stake in shares of ARM by 126.0% in the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after buying an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC purchased a new stake in shares of ARM during the 3rd quarter valued at about $28,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of ARM during the 4th quarter valued at about $30,000. Navalign LLC purchased a new stake in shares of ARM during the 4th quarter valued at about $33,000. Finally, FWL Investment Management LLC purchased a new stake in shares of ARM during the 2nd quarter valued at about $34,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

About ARM

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.