The stock of Arm Holdings plc. ADR (NASDAQ: ARM) has increased by 2.91 when compared to last closing price of 117.94. Despite this, the company has experienced a 4.29% gain in its stock price over the last five trading sessions. fool.com reported 2025-03-17 that Arm Holdings (ARM 0.67%) is considering a major strategic shift that could have enormous implications for stock market investors.
Is It Worth Investing in Arm Holdings plc. ADR (NASDAQ: ARM) Right Now?
Arm Holdings plc. ADR (NASDAQ: ARM) has a higher price-to-earnings ratio of 160.14x compared to its average ratio. ARM has 36-month beta value of 4.33. Analysts have mixed views on the stock, with 17 analysts rating it as a “buy,” 5 as “overweight,” 13 as “hold,” and 3 as “sell.”
The public float for ARM is 1.05B, and currently, short sellers hold a 1.41% ratio of that float. The average trading volume of ARM on March 18, 2025 was 6.02M shares.
ARM’s Market Performance
The stock of Arm Holdings plc. ADR (ARM) has seen a 4.29% increase in the past week, with a -26.37% drop in the past month, and a -15.22% fall in the past quarter. The volatility ratio for the week is 5.00%, and the volatility levels for the past 30 days are at 5.67% for ARM. The simple moving average for the past 20 days is -6.36% for ARM’s stock, with a -15.01% simple moving average for the past 200 days.
Analysts’ Opinion of ARM
Many brokerage firms have already submitted their reports for ARM stocks, with UBS repeating the rating for ARM by listing it as a “Buy.” The predicted price for ARM in the upcoming period, according to UBS is $160 based on the research report published on November 25, 2024 of the previous year 2024.
Wells Fargo, on the other hand, stated in their research note that they expect to see ARM reach a price target of $155. The rating they have provided for ARM stocks is “Overweight” according to the report published on November 22nd, 2024.
TD Cowen gave a rating of “Buy” to ARM, setting the target price at $165 in the report published on November 07th of the previous year.
ARM Trading at -15.71% 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 -35.70% of loss for the given period.
Volatility was left at 5.67%, however, over the last 30 days, the volatility rate increased by 5.00%, as shares sank -23.93% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.61% lower at present.
During the last 5 trading sessions, ARM rose by +4.29%, which changed the moving average for the period of 200-days by -2.86% in comparison to the 20-day moving average, which settled at $129.62. In addition, Arm Holdings plc. ADR saw -1.61% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARM starting from Child Jason, who proposed sale 9,220 shares at the price of $153.20 back on Feb 20 ’25. After this action, Child Jason now owns shares of Arm Holdings plc. ADR, valued at $1,412,504 using the latest closing price.
Child Jason, the Officer of Arm Holdings plc. ADR, proposed sale 10,080 shares at $175.00 during a trade that took place back on Jan 22 ’25, which means that Child Jason is holding shares at $1,764,000 based on the most recent closing price.
Stock Fundamentals for ARM
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.95 for the gross margin
The net margin for Arm Holdings plc. ADR stands at 0.22. The total capital return value is set at 0.06. Equity return is now at value 14.11, with 10.33 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 2.97.
Currently, EBITDA for the company is 279.0 million with net debt to EBITDA at -2.87. When we switch over and look at the enterprise to sales, we see a ratio of 34.15. The receivables turnover for the company is 2.32for trailing twelve months and the total asset turnover is 0.43. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.96.
Conclusion
To put it simply, Arm Holdings plc. ADR (ARM) has had a bad performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” 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.
