The stock price of Arm Holdings plc. ADR (NASDAQ: ARM) has plunged by -0.10 when compared to previous closing price of 158.05, but the company has seen a 15.61% gain in its stock price over the last five trading sessions. fool.com reported 2024-06-15 that Nvidia is the bona fide chip leader in artificial intelligence. Arm Holdings will collect royalties on the AI revolution.
Is It Worth Investing in Arm Holdings plc. ADR (NASDAQ: ARM) Right Now?
Arm Holdings plc. ADR (NASDAQ: ARM) has a price-to-earnings ratio of 553.42x that is above its average ratio. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
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The public float for ARM is 1.04B and currently, short sellers hold a 0.97% ratio of that float. The average trading volume of ARM on June 17, 2024 was 9.56M shares.
ARM’s Market Performance
The stock of Arm Holdings plc. ADR (ARM) has seen a 15.61% increase in the past week, with a 38.90% rise in the past month, and a 24.35% gain in the past quarter. The volatility ratio for the week is 7.82%, and the volatility levels for the past 30 days are at 5.80% for ARM. The simple moving average for the last 20 days is 24.46% for ARM stock, with a simple moving average of 75.28% for the last 200 days.
Analysts’ Opinion of ARM
Many brokerage firms have already submitted their reports for ARM stocks, with Exane BNP Paribas repeating the rating for ARM by listing it as a “Neutral.” The predicted price for ARM in the upcoming period, according to Exane BNP Paribas is $100 based on the research report published on April 19, 2024 of the current year 2024.
Evercore ISI, on the other hand, stated in their research note that they expect to see ARM reach a price target of $156. The rating they have provided for ARM stocks is “Outperform” according to the report published on April 16th, 2024.
ARM Trading at 35.27% from the 50-Day Moving Average
After a stumble in the market that brought ARM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.73% of loss for the given period.
Volatility was left at 5.80%, however, over the last 30 days, the volatility rate increased by 7.82%, as shares surge +38.17% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +29.41% upper at present.
During the last 5 trading sessions, ARM rose by +15.61%, in comparison to the 20-day moving average, which settled at $129.04. In addition, Arm Holdings plc. ADR saw 110.11% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for ARM
Current profitability levels for the company are sitting at:
- 0.03 for the present operating margin
- 0.95 for the gross margin
The net margin for Arm Holdings plc. ADR stands at 0.09. The total capital return value is set at 0.02. Equity return is now at value 6.55, with 4.14 for asset returns.
Based on Arm Holdings plc. ADR (ARM), the company’s capital structure generated 0.04 points at debt to capital in total, while cash flow to debt ratio is standing at 4.82.
Currently, EBITDA for the company is 261.0 million with net debt to EBITDA at -5.95. When we switch over and look at the enterprise to sales, we see a ratio of 50.28. The receivables turnover for the company is 2.86for trailing twelve months and the total asset turnover is 0.41. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.79.
Conclusion
In conclusion, Arm Holdings plc. ADR (ARM) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
