ARM (NASDAQ:ARM) Trading 5.4% Higher – Should You Buy?

Arm Holdings plc (NASDAQ:ARM) shares were up 5.4% during mid-day trading on Monday . The company traded as high as $160.15 and last traded at $159.59. Approximately 3,561,035 shares were traded during trading, a decline of 69% from the average daily volume of 11,335,448 shares. The stock had previously closed at $151.46.

Wall Street Analysts Forecast Growth

ARM has been the subject of several research reports. Sanford C. Bernstein raised ARM from an “underperform” rating to a “market perform” rating and raised their target price for the stock from $92.00 to $100.00 in a research report on Wednesday, August 7th. Evercore ISI upped their target price on shares of ARM from $145.00 to $173.00 and gave the company an “outperform” rating in a research note on Thursday, August 1st. Guggenheim raised their price target on shares of ARM from $110.00 to $169.00 and gave the stock a “buy” rating in a research note on Tuesday, June 25th. TD Cowen upgraded ARM to a “strong-buy” rating in a research note on Monday, September 16th. Finally, Deutsche Bank Aktiengesellschaft raised their target price on ARM from $82.00 to $105.00 and gave the stock a “hold” rating in a research report on Thursday, August 1st. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $134.91.

ARM Price Performance

The stock’s 50 day moving average is $134.75 and its two-hundred day moving average is $134.61. The firm has a market capitalization of $159.79 billion and a P/E ratio of 397.68.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, July 31st. The company reported $0.40 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. ARM had a return on equity of 18.97% and a net margin of 12.12%. The company had revenue of $939.00 million for the quarter, compared to the consensus estimate of $905.53 million. During the same quarter in the prior year, the business posted $0.24 EPS. The firm’s quarterly revenue was up 39.1% on a year-over-year basis. As a group, equities research analysts expect that Arm Holdings plc will post 0.86 EPS for the current year.

Institutional Investors Weigh In On ARM

Hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP raised its position in shares of ARM by 56.4% during the fourth quarter. Wellington Management Group LLP now owns 4,468,720 shares of the company’s stock worth $335,802,000 after purchasing an additional 1,611,926 shares during the period. Fisher Asset Management LLC bought a new position in ARM in the fourth quarter valued at approximately $102,000. B. Riley Wealth Advisors Inc. acquired a new position in shares of ARM in the fourth quarter valued at approximately $388,000. PNC Financial Services Group Inc. increased its position in shares of ARM by 47.9% during the fourth quarter. PNC Financial Services Group Inc. now owns 1,526 shares of the company’s stock worth $115,000 after acquiring an additional 494 shares in the last quarter. Finally, HighPoint Advisor Group LLC acquired a new stake in shares of ARM during the fourth quarter worth $152,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

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.