ARM (NASDAQ:ARM) Trading 3% Higher – Here’s Why

Arm Holdings plc (NASDAQ:ARM) shares rose 3% on Friday . The stock traded as high as $145.35 and last traded at $145.33. Approximately 2,153,312 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 11,111,327 shares. The stock had previously closed at $141.04.

Analysts Set New Price Targets

ARM has been the subject of several research reports. Hsbc Global Res raised ARM to a “moderate sell” rating in a research report on Monday, July 29th. Raymond James initiated coverage on ARM in a research note on Friday, September 13th. They issued an “outperform” rating and a $160.00 target price for the company. HSBC lowered ARM from a “hold” rating to a “reduce” rating in a research note on Monday, July 29th. Daiwa Capital Markets upgraded ARM from a “neutral” rating to an “outperform” rating and set a $130.00 target price for the company in a research note on Thursday, August 8th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $180.00 target price on shares of ARM in a research note on Thursday, August 1st. One analyst has rated the stock with a sell rating, seven have issued a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $138.57.

ARM Price Performance

The company has a market capitalization of $152.20 billion and a price-to-earnings ratio of 372.65. The stock has a 50 day moving average price of $138.93 and a two-hundred day moving average price of $135.70.

ARM (NASDAQ:ARM) last announced its 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. The company had revenue of $939.00 million during the quarter, compared to analyst estimates of $905.53 million. ARM had a return on equity of 18.97% and a net margin of 12.12%. The firm’s quarterly revenue was up 39.1% compared to the same quarter last year. During the same period last year, the company posted $0.24 earnings per share. Sell-side analysts forecast that Arm Holdings plc will post 0.86 EPS for the current fiscal year.

Hedge Funds Weigh In On ARM

Several hedge funds have recently added to or reduced their stakes in ARM. Fisher Asset Management LLC bought a new position in ARM in the fourth quarter valued at about $102,000. PNC Financial Services Group Inc. boosted its holdings in 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 buying an additional 494 shares during the last quarter. Kingswood Wealth Advisors LLC bought a new position in ARM during the first quarter worth about $440,000. Sunbelt Securities Inc. bought a new position in ARM during the first quarter worth about $169,000. Finally, Sovereign Financial Group Inc. bought a new position in ARM during the first quarter worth about $266,000. 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.