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

Arm Holdings plc (NASDAQ:ARM)’s share price shot up 4.9% during mid-day trading 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. 8,212,389 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 10,904,920 shares. The stock had previously closed at $144.68.

The company reported $0.30 EPS 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 business had revenue of $844.00 million for the quarter, compared to the consensus estimate of $810.03 million. During the same period in the previous year, the business earned $0.36 EPS. ARM’s revenue was up 4.7% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on ARM shares. HSBC cut shares of ARM from a “hold” rating to a “reduce” rating in a research report on Monday, July 29th. JPMorgan Chase & Co. raised their price target on ARM from $140.00 to $160.00 and gave the company an “overweight” rating in a report on Thursday. Morgan Stanley upgraded shares of ARM from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $107.00 to $190.00 in a research report on Friday, July 19th. TD Cowen boosted their price target on shares of ARM from $150.00 to $165.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Hsbc Global Res raised shares of ARM to a “moderate sell” rating in a report on Monday, July 29th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and an average target price of $145.57.

Institutional Investors Weigh In On ARM

A number of large investors have recently added to or reduced their stakes in ARM. International Assets Investment Management LLC lifted its holdings 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 buying an additional 806,676 shares in the last quarter. Sei Investments Co. raised its position in ARM by 551.6% in the second quarter. Sei Investments Co. now owns 579,330 shares of the company’s stock valued at $94,790,000 after purchasing an additional 490,415 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. grew its holdings in ARM by 186.8% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 359,105 shares of the company’s stock worth $52,279,000 after acquiring an additional 233,909 shares during the last quarter. Marsico Capital Management LLC acquired a new position in ARM during the 2nd quarter worth about $33,207,000. Finally, ProShare Advisors LLC acquired a new stake in ARM during the 2nd quarter valued at approximately $16,611,000. Institutional investors own 7.53% of the company’s stock.

ARM Stock Down 2.1 %

The firm has a market cap of $154.53 billion, a P/E ratio of 377.73, a P/E/G ratio of 6.27 and a beta of 5.40. The business’s 50 day moving average is $142.03 and its two-hundred day moving average is $137.63.

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.