The stock price of Arm Holdings plc. ADR (NASDAQ: ARM) has plunged by -0.78 when compared to previous closing price of 118.43, but the company has seen a 3.57% gain in its stock price over the last five trading sessions. investorplace.com reported 2024-08-09 that For many investors, the conversation around the semiconductor industry isn’t always the clearest. Some companies are fabricators, others are designers, and then there’s Arm Holdings (NASDAQ: ARM ) which is a designer for designers, which puts ARM stock in an interesting position.
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 that is above its average at 298.77x. Opinions on the stock are mixed, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for ARM is 1.08B, and at present, short sellers hold a 1.29% of that float. On August 09, 2024, the average trading volume of ARM was 11.46M shares.
ARM’s Market Performance
ARM stock saw a decrease of 3.57% in the past week, with a monthly decline of -32.15% and a quarterly a decrease of 13.43%. The volatility ratio for the week is 10.84%, and the volatility levels for the last 30 days are 7.99% for Arm Holdings plc. ADR (ARM). The simple moving average for the last 20 days is -19.38% for ARM stock, with a simple moving average of 9.26% for the last 200 days.
Analysts’ Opinion of ARM
Many brokerage firms have already submitted their reports for ARM stocks, with Daiwa Securities repeating the rating for ARM by listing it as a “Outperform.” The predicted price for ARM in the upcoming period, according to Daiwa Securities is $130 based on the research report published on August 08, 2024 of the current year 2024.
Bernstein, on the other hand, stated in their research note that they expect to see ARM reach a price target of $100, previously predicting the price at $92. The rating they have provided for ARM stocks is “Mkt Perform” according to the report published on August 07th, 2024.
TD Cowen gave a rating of “Buy” to ARM, setting the target price at $150 in the report published on August 01st of the current year.
ARM Trading at -22.25% 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 -37.75% of loss for the given period.
Volatility was left at 7.99%, however, over the last 30 days, the volatility rate increased by 10.84%, as shares sank -35.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.95% lower at present.
During the last 5 trading sessions, ARM rose by +3.21%, which changed the moving average for the period of 200-days by +133.20% in comparison to the 20-day moving average, which settled at $142.54. In addition, Arm Holdings plc. ADR saw 56.37% 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:
- 0.05 for the present operating margin
- 0.94 for the gross margin
The net margin for Arm Holdings plc. ADR stands at 0.12. The total capital return value is set at 0.03. Equity return is now at value 8.58, with 5.82 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 3.67.
Currently, EBITDA for the company is 261.0 million with net debt to EBITDA at -3.4. When we switch over and look at the enterprise to sales, we see a ratio of 32.54. The receivables turnover for the company is 2.78for trailing twelve months and the total asset turnover is 0.44. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.61.
Conclusion
To sum up, Arm Holdings plc. ADR (ARM) has seen a better performance recently. Analysts have differing views on the stock, with some seeing 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.
