ARM (NASDAQ:ARM) Shares Gap Up – Should You Buy?

Arm Holdings plc (NASDAQ:ARM) gapped up before the market opened on Thursday . The stock had previously closed at $152.50, but opened at $157.71. ARM shares last traded at $157.37, with a volume of 1,513,939 shares.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. TD Cowen raised ARM to a “strong-buy” rating in a research report on Monday, September 16th. Daiwa Capital Markets raised ARM from a “neutral” rating to an “outperform” rating and set a $130.00 price objective for the company in a research report on Thursday, August 8th. Evercore ISI raised their price objective on ARM from $145.00 to $173.00 and gave the stock an “outperform” rating in a research report on Thursday, August 1st. Barclays raised their price objective on ARM from $105.00 to $125.00 and gave the stock an “overweight” rating in a research report on Thursday, August 1st. Finally, Deutsche Bank Aktiengesellschaft raised their price objective 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 given a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $134.91.

ARM Stock Down 1.0 %

The stock has a 50-day moving average price of $137.10 and a 200 day moving average price of $135.06. The firm has a market capitalization of $160.35 billion and a price-to-earnings ratio of 392.39.

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

Institutional Investors Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in the business. Mark Sheptoff Financial Planning LLC purchased a new stake in ARM in the first quarter valued at approximately $25,000. ORG Partners LLC purchased a new stake in ARM in the third quarter valued at approximately $29,000. Transcendent Capital Group LLC purchased a new stake in ARM in the second quarter valued at approximately $33,000. RiverPark Advisors LLC lifted its stake in ARM by 45.3% in the second quarter. RiverPark Advisors LLC now owns 247 shares of the company’s stock valued at $40,000 after buying an additional 77 shares during the last quarter. Finally, Mather Group LLC. purchased a new stake in ARM in the second quarter valued at approximately $41,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

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.