ARM Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report)’s share price traded up 3.3% during mid-day trading on Thursday . The company traded as high as $228.68 and last traded at $228.50. 8,353,041 shares were traded during mid-day trading, an increase of 7% from the average session volume of 7,788,885 shares. The stock had previously closed at $221.21.
Trending Headlines about ARM
Here are the key news stories impacting ARM this week:
- Positive Sentiment: Reports that Arm and SoftBank tried to acquire Cerebras Systems suggest Arm is actively looking to expand its AI chip ambitions beyond its core licensing business, which investors may view as a sign of longer-term growth optionality. Article: Arm, SoftBank Tried To Buy Cerebras Before $34 Billion IPO
- Positive Sentiment: A UBS-linked report showing AMD and ARM continuing to gain server share at Intel’s expense reinforces the idea that Arm is benefiting from rising demand for alternative chip architectures in AI and data centers. Article: New report shows AMD and ARM continue server share gains at Intel’s expense
- Positive Sentiment: Coverage highlighting Arm’s AI chip ambitions and growing relevance in AI-focused computing is helping keep sentiment constructive around the stock. Article: Arm’s Cerebras Bid Sheds Light On AI Chip Expansion Plans
- Neutral Sentiment: Arm CEO comments about CPUs scaling to extreme core counts in an AI-driven future support the long-term AI narrative, but this is more strategic commentary than a near-term catalyst. Article: Arm CEO predicts CPUs will scale to extreme core counts in AI-driven future
- Negative Sentiment: Insider Spencer Collins sold 51,961 shares, which can weigh on sentiment because insider selling may raise questions about valuation or near-term upside. Article: ARM (NASDAQ:ARM) Insider Spencer Collins Sells 51,961 Shares
Wall Street Analysts Forecast Growth
A number of equities research analysts recently issued reports on the stock. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Jefferies Financial Group reaffirmed a “buy” rating on shares of ARM in a research report on Thursday, May 7th. Evercore reduced their price target on shares of ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research report on Thursday, February 5th. Guggenheim lifted their price target on shares of ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Finally, Rosenblatt Securities lifted their price target on shares of ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Nineteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $199.61.
ARM Price Performance
The stock has a market capitalization of $241.41 billion, a price-to-earnings ratio of 272.02, a PEG ratio of 7.17 and a beta of 3.40. The business’s 50-day simple moving average is $161.08 and its two-hundred day simple moving average is $139.70.
ARM (NASDAQ:ARM – Get Free Report) last announced its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The firm 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%. As a group, sell-side analysts expect that ARM Holdings PLC Sponsored ADR will post 1.18 EPS for the current year.
Insider Activity
In other news, CEO Rene A. Haas sold 9,299 shares of ARM stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $160.85, for a total transaction of $1,495,744.15. Following the sale, the chief executive officer owned 273,680 shares in the company, valued at $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 is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction that occurred on 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 sale, the insider owned 51,125 shares in the company, valued at $10,824,696.25. This represents a 50.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 135,673 shares of company stock worth $24,616,433 over the last 90 days.
Institutional Trading of ARM
A number of hedge funds have recently made changes to their positions in ARM. Morgan Stanley increased its stake in shares of ARM by 1.2% in the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after buying an additional 45,314 shares during the last quarter. Invesco Ltd. raised its holdings in ARM by 36.9% in the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after acquiring an additional 654,727 shares in the last quarter. Coatue Management LLC raised its holdings in ARM by 1.8% in the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after acquiring an additional 40,174 shares in the last quarter. Wellington Management Group LLP raised its holdings in ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after acquiring an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group raised its holdings in ARM by 11.0% in the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after acquiring an additional 187,035 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.
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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