ARM (NASDAQ:ARM) Shares Up 4.9% on Strong Earnings

Arm Holdings plc (NASDAQ:ARM) shares were up 4.9% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $154.65 and last traded at $151.80. Approximately 8,212,389 shares changed hands during mid-day trading, a decline of 25% from the average daily volume of 10,904,920 shares. The stock had previously closed at $144.68.

The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.04. ARM had a return on equity of 18.97% and a net margin of 12.12%. The firm had revenue of $844.00 million for the quarter, compared to analyst estimates of $810.03 million. During the same period in the previous year, the company posted $0.36 earnings per share. The company’s revenue for the quarter was up 4.7% on a year-over-year basis.

Analysts Set New Price Targets

ARM has been the topic of several research reports. HSBC cut shares of ARM from a “hold” rating to a “reduce” rating in a research report on Monday, July 29th. Needham & Company LLC restated a “hold” rating on shares of ARM in a report on Thursday. Evercore ISI lifted their target price on ARM from $173.00 to $176.00 and gave the company an “outperform” rating in a research report on Thursday. TD Cowen upped their price target on ARM from $150.00 to $165.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Sanford C. Bernstein cut shares of ARM from a “market perform” rating to an “underperform” rating and set a $100.00 price target for the company. in a research note on Thursday, October 31st. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, ARM currently has an average rating of “Moderate Buy” and an average price target of $141.95.

Institutional Investors Weigh In On ARM

Large investors have recently added to or reduced their stakes in the business. Mark Sheptoff Financial Planning LLC bought a new position in ARM during the first quarter worth $25,000. ORG Partners LLC acquired a new stake in shares of ARM during the 3rd quarter worth about $29,000. Transcendent Capital Group LLC bought a new stake in shares of ARM during the 2nd quarter worth about $33,000. Gilliland Jeter Wealth Management LLC grew its stake in ARM by 83.0% in the 3rd quarter. Gilliland Jeter Wealth Management LLC now owns 258 shares of the company’s stock valued at $37,000 after buying an additional 117 shares during the last quarter. Finally, RiverPark Advisors LLC raised its holdings in ARM by 45.3% in the 2nd quarter. RiverPark Advisors LLC now owns 247 shares of the company’s stock valued at $40,000 after acquiring an additional 77 shares during the period. Institutional investors own 7.53% of the company’s stock.

ARM Price Performance

The stock has a market capitalization of $159.88 billion, a price-to-earnings ratio of 383.79, a P/E/G ratio of 6.45 and a beta of 5.40. The company’s 50-day simple moving average is $141.27 and its 200-day simple moving average is $137.49.

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.