The stock price of Arm Holdings plc. ADR (NASDAQ: ARM) has plunged by -0.68 when compared to previous closing price of 149.14, but the company has seen a -9.35% decline in its stock price over the last five trading sessions. fool.com reported 2024-07-26 that The Trade Desk has delivered impressive gains since going public, and it could continue to do so thanks to the huge opportunity in programmatic advertising. Arm Holdings went public last year, and the stock has already more than doubled.
Is It Worth Investing in Arm Holdings plc. ADR (NASDAQ: ARM) Right Now?
The price-to-earnings ratio for Arm Holdings plc. ADR (NASDAQ: ARM) is above average at 519.17x. 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 at present, short sellers hold a 1.34% of that float. The average trading volume of ARM on July 26, 2024 was 10.33M shares.
ARM’s Market Performance
The stock of Arm Holdings plc. ADR (ARM) has seen a -9.35% decrease in the past week, with a -10.08% drop in the past month, and a 51.25% gain in the past quarter. The volatility ratio for the week is 6.21%, and the volatility levels for the past 30 days are at 6.02% for ARM. The simple moving average for the past 20 days is -12.66% for ARM’s stock, with a 42.57% simple moving average for the past 200 days.
Analysts’ Opinion of ARM
Many brokerage firms have already submitted their reports for ARM stocks, with Morgan Stanley repeating the rating for ARM by listing it as a “Overweight.” The predicted price for ARM in the upcoming period, according to Morgan Stanley is $190 based on the research report published on July 19, 2024 of the current year 2024.
Exane BNP Paribas, on the other hand, stated in their research note that they expect to see ARM reach a price target of $100. The rating they have provided for ARM stocks is “Neutral” according to the report published on April 19th, 2024.
Evercore ISI gave a rating of “Outperform” to ARM, setting the target price at $156 in the report published on April 16th of the current year.
ARM Trading at -0.58% 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 -21.53% of loss for the given period.
Volatility was left at 6.02%, however, over the last 30 days, the volatility rate increased by 6.21%, as shares sank -11.71% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +26.34% upper at present.
During the last 5 trading sessions, ARM fell by -9.80%, which changed the moving average for the period of 200-days by +171.67% in comparison to the 20-day moving average, which settled at $168.62. In addition, Arm Holdings plc. ADR saw 97.11% 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 47.08. 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 summary, Arm Holdings plc. ADR (ARM) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
