ARM (NASDAQ:ARM) Stock Price Increases by 4% - Is Now the Right Time to Invest?

Arm Holdings plc (NASDAQ:ARM) has seen its stock price rise by 4% during Monday's mid-day trading session. The shares reached a high of $148.70 before last trading at $146.68. During this period, around 2,803,899 shares changed hands, which is a significant drop of 37% compared to its average daily trading volume of 4,473,151 shares. The stock had previously closed at $141.08.

Insights from Wall Street Analysts

Recent reports from financial analysts have sparked discussions around the stock's future. Sanford C. Bernstein downgraded ARM from a "market perform" rating to an "underperform" rating, setting a target price of $100.00. Conversely, Susquehanna raised their target price for ARM from $115.00 to $118.00 and maintained a "neutral" rating. Benchmark initiated coverage of ARM on September 16th with a "hold" rating, and William Blair followed up on September 18th, giving the stock an "outperform" rating. Moreover, Barclays increased their price target from $125.00 to $145.00 while granting an "overweight" rating. Presently, the stock holds an average rating of "Moderate Buy" from two sell ratings, six hold ratings, eighteen buy ratings, and one strong buy rating, with a consensus price target of $150.32.

Current Stock Performance

The stock of ARM has shown impressive growth, recently rising by 5.7%. With a market capitalization of approximately $156.33 billion, the company showcases a P/E ratio of 248.65, a PEG ratio of 7.15, and a beta of 4.53. The stock's 50-day moving average price stands at $137.80, and the 200-day moving average price is $142.28.

Recent Earnings Announcement

On November 6th, ARM reported its quarterly earnings, announcing $0.30 earnings per share, which surpassed the consensus estimate of $0.26 by $0.04. In terms of revenue, the company generated $844.00 million, compared to the expected $810.03 million. ARM's return on equity was recorded at 13.69%, while the net margin was 18.13%. The quarterly revenue was up by 4.7% year-over-year; however, it had previously reported $0.36 earnings per share during the same quarter the previous year. Analysts expect ARM to report 0.79 earnings per share for the current fiscal year.

Institutional Investor Activity

Several institutional investors have made changes to their stakes in ARM lately. For example, KP Management LLC increased its holdings by 28.6% in the third quarter, now owning 45,000 shares valued at about $6,435,000 after acquiring an additional 10,000 shares. Modus Advisors LLC also raised its holdings by 300.2% in the fourth quarter, bringing their total to 17,935 shares valued at $2,212,000, after purchasing an additional 13,453 shares. Other notable adjustments came from XTX Topco Ltd, which boosted its holdings by 150.1%, and Willner & Heller LLC, which increased theirs by 193.7%. Currently, institutional investors and hedge funds own about 7.53% of ARM's shares.

Overview of ARM Holdings

Arm Holdings plc is involved in designing, developing, and licensing central processing unit (CPU) products, along with related technologies that semiconductor companies and original equipment manufacturers depend on to create their products. The company offers a broad array of products, including microprocessors, system intellectual property (IPs), graphics processing units, physical IP, associated systems IPs, and software tools.

Final Thoughts on Investment

Before making any investment decisions regarding ARM, it is essential to consider various analyst recommendations alongside your investment strategy. While current analysts maintain a "Moderate Buy" rating for ARM, some top analysts have identified other stocks that may present better opportunities.

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