Arm Holdings plc. ADR (NASDAQ: ARM)’s stock price has gone rise by 1.03 in comparison to its previous close of 103.99, however, the company has experienced a 18.54% increase in its stock price over the last five trading days. fool.com reported 2025-04-10 that Investors and consumers alike have had plenty to worry about in recent weeks. The on-again, off-again tariffs, the ongoing trade war with China, and persistent inflation have led to concerns about a potential recession.
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 138.62x. The 36-month beta value for ARM is also noteworthy at 4.14. There are mixed opinions on the stock, with 17 analysts rating it as a “buy,” 5 rating it as “overweight,” 13 rating it as “hold,” and 2 rating it as “sell.”
The public float for ARM is 1.05B, and at present, short sellers hold a 1.27% of that float. The average trading volume of ARM on April 15, 2025 was 6.24M shares.
ARM’s Market Performance
ARM’s stock has seen a 18.54% increase for the week, with a -10.92% drop in the past month and a -23.35% fall in the past quarter. The volatility ratio for the week is 12.37%, and the volatility levels for the past 30 days are at 7.52% for Arm Holdings plc. ADR. The simple moving average for the past 20 days is -2.63% for ARM’s stock, with a -24.43% 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 -17.53% 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 -44.34% of loss for the given period.
Volatility was left at 7.52%, however, over the last 30 days, the volatility rate increased by 12.37%, as shares sank -13.44% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -34.15% lower at present.
During the last 5 trading sessions, ARM rose by +18.54%, which changed the moving average for the period of 200-days by -36.22% in comparison to the 20-day moving average, which settled at $107.90. In addition, Arm Holdings plc. ADR saw -14.83% 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 29.5. 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
In summary, Arm Holdings plc. ADR (ARM) has had a bad performance as of late. Analysts have bearish opinions on the stock, with some viewing 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.
