ARM (NASDAQ:ARM) Trading 1.7% Higher – Here’s Why

Arm Holdings plc (NASDAQ:ARM) shares rose 1.7% on Wednesday . The company traded as high as $144.54 and last traded at $142.76. Approximately 1,425,974 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 10,451,744 shares. The stock had previously closed at $140.38.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on ARM shares. Daiwa Capital Markets upgraded shares of ARM from a “neutral” rating to an “outperform” rating and set a $130.00 price target on the stock in a report on Thursday, August 8th. Evercore ISI raised their target price on shares of ARM from $173.00 to $176.00 and gave the company an “outperform” rating in a research note on Thursday, November 7th. Benchmark assumed coverage on shares of ARM in a research note on Monday, September 16th. They issued a “hold” rating for the company. Raymond James assumed coverage on shares of ARM in a research note on Friday, September 13th. They issued an “outperform” rating and a $160.00 price objective for the company. Finally, Barclays lifted their price objective on shares of ARM from $125.00 to $145.00 and gave the stock an “overweight” rating in a research note on Thursday, November 7th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, ARM presently has an average rating of “Moderate Buy” and a consensus target price of $150.32.

ARM Price Performance

The firm has a market cap of $148.06 billion, a PE ratio of 237.94, a price-to-earnings-growth ratio of 7.01 and a beta of 4.67. The stock’s fifty day moving average price is $142.90 and its 200-day moving average price is $142.09.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, November 6th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. ARM had a net margin of 18.13% and a return on equity of 13.69%. The business had revenue of $844.00 million during the quarter, compared to analyst estimates of $810.03 million. During the same quarter in the prior year, the firm earned $0.36 earnings per share. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Arm Holdings plc will post 0.79 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Franklin Resources Inc. lifted its position in shares of ARM by 21.7% during the third quarter. Franklin Resources Inc. now owns 1,281,484 shares of the company’s stock worth $183,265,000 after purchasing an additional 228,467 shares in the last quarter. International Assets Investment Management LLC grew its position in shares of ARM by 14,351.1% during the third quarter. International Assets Investment Management LLC now owns 812,297 shares of the company’s stock worth $1,161,670,000 after acquiring an additional 806,676 shares during the last quarter. Sei Investments Co. increased its stake in ARM by 551.6% in the 2nd quarter. Sei Investments Co. now owns 579,330 shares of the company’s stock valued at $94,790,000 after buying an additional 490,415 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its stake in ARM by 186.8% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 359,105 shares of the company’s stock valued at $52,279,000 after buying an additional 233,909 shares during the period. Finally, Mark Asset Management LP increased its stake in ARM by 14.2% in the 2nd quarter. Mark Asset Management LP now owns 238,589 shares of the company’s stock valued at $39,038,000 after buying an additional 29,686 shares during the period. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.