Stocks

ARM (NASDAQ:ARM) Stock Price Increases by 3.8% - Should You Consider Buying?

Published February 8, 2025

On Wednesday, Arm Holdings plc (NASDAQ:ARM - Get Free Report) saw its share price rise by an impressive 3.8%. The stock reached a peak of $168.55 before closing at $168.39. A total of 2,997,312 shares changed hands, indicating a significant drop of 55% compared to the average trading volume of 6,596,675 shares. Previously, the stock closed at $162.20.

Insights from Wall Street Analysts

Various equities analysts have recently shared their insights regarding ARM. Benchmark has maintained a "hold" rating on the shares. In contrast, Mizuho raised their price target for ARM from $160.00 to $180.00, giving the stock an "outperform" rating. Barclays has also revised its price target for ARM, moving it up from $145.00 to $155.00 while assigning an "overweight" rating. Additionally, JPMorgan Chase & Co. increased its price target from $160.00 to $175.00, and Jefferies Financial Group raised theirs from $170.00 to $195.00, providing a "buy" rating. Overall, two investment analysts have issued a sell rating, six have assigned a hold rating, while nineteen analysts suggest a buy, with one issuing a strong buy rating. Data from MarketBeat.com indicates that ARM currently has a consensus rating of "Moderate Buy" with an average target price of $162.17.

Current Stock Performance

ARM's stock has a fifty-day simple moving average of $144.13 and a two-hundred-day moving average of $140.00. The company's market capitalization stands at approximately $170.28 billion, with a price-to-earnings ratio of 270.85 and a PEG ratio of 7.46. The stock exhibits a beta of 4.56, reflecting significant volatility.

Recent Earnings Report

The latest quarterly earnings report for ARM was released on November 6, showcasing a positive performance. The company reported earnings of $0.30 per share, surpassing analysts' expectations of $0.26 by $0.04. The firm generated revenues of $844 million, which was above the forecasted $810.03 million, marking a 4.7% increase year-over-year. The return on equity stood at 13.69%, alongside a net margin of 18.13%. In the previous year’s quarter, earnings per share were at $0.36. Analysts predict that Arm Holdings plc will achieve earnings of $0.84 per share for the current financial year.

Institutional Investors' Actions

Several institutional investors have made modifications to their holdings in ARM recently. ORG Partners LLC acquired a new stake in ARM during the third quarter, valued at approximately $29,000. Meanwhile, Gilliland Jeter Wealth Management LLC increased its position in ARM by 83% during the same period, now owning 258 shares worth $37,000 after purchasing 117 additional shares. Quantbot Technologies LP and Berbice Capital Management LLC have also entered with new stakes, valued at around $52,000 and $49,000, respectively. Additionally, Farther Finance Advisors LLC increased its investment by 45.8%, now holding 417 shares worth $60,000. Currently, institutional investors control 7.53% of ARM's stock.

About Arm Holdings

Arm Holdings plc specializes in designing, developing and licensing CPU products and related technologies for semiconductor firms and original equipment manufacturers. Their offerings include microprocessors, system intellectual property (IPs), graphics processing units, physical IP, and associated systems IPs, along with software and tools.

Should You Invest in ARM Now?

As you contemplate your next investment, it’s worth considering expert opinions on ARM. Although the stock currently has a "Moderate Buy" rating from analysts, many top-rated experts recommend alternative options that might offer better prospects.

ARM, Stocks, Investing