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ARM

TECHNOLOGY

Arm Holdings plc American Depositary Shares

AI Stock Analysis· Neutral
Jun 22 · 8:23 PM ET

Arm Holdings plc American Depositary Shares (ARM) is currently priced at $407.72, reflecting a significant decline of 7.22% today. The stock's technical indicators present a mixed picture; the Relative Strength Index (RSI) stands at 61.9, suggesting it is nearing overbought territory, while the Simple Moving Averages (SMAs) indicate strong upward momentum with the 20-day SMA at $367.77, the 50-day at $269.69, and the 200-day at $169.21. The Moving Average Convergence Divergence (MACD) is positive at 41.60, with a signal line at 40.03, indicating bullish momentum. However, the recent price drop could signal market volatility or profit-taking after a strong rally.

From a fundamental perspective, Arm Holdings showcases extraordinary growth metrics with a staggering year-over-year revenue growth of 2278.5% and a quarter-over-quarter revenue growth of 20.1%. The company has an impressive gross margin of 9248.0% and an operating margin of 1845.5%, underscoring its efficiency in managing costs relative to revenue. However, the high price-to-earnings (P/E) ratio of 529.5 and a forward P/E of 200.0 indicate that the stock is priced for aggressive growth expectations. Analysts are generally optimistic, with a consensus rating of "BUY" (7 strong buy, 21 buy, 10 hold, 2 sell) and a target price of $278.29, suggesting a significant downside from the current price level. This valuation may reflect confidence in the company’s long-term growth trajectory despite its high multiple.

Earnings for Arm Holdings are not scheduled within the next 30 days, which may lead to a lack of immediate catalysts for the stock. However, investors should monitor the company's ongoing revenue growth and any potential changes in margins, as these factors will be critical in assessing future performance. The substantial EPS growth of 47.9% quarter-over-quarter indicates strong earnings potential, but the market will be keenly observing any shifts in the growth rate or margin compression. As the technology sector continues to evolve, particularly in semiconductors, keeping an eye on competitive positioning against rivals like Intel will be vital for understanding Arm's future market dynamics.

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52-Week Range

$100.02$452.70

$375.23

Fundamentals

Market Cap$469.4B
P/E Ratio529.5
EPS$0.83
Dividend Yield
Dividend / Share
ROE11.9%
Profit Margin18.4%
Debt / Equity

Trading

Volume3.8M
Avg Volume (10D)
Shares Outstanding1.07B

ARM News

66 articles

Price Data

Open$370.00
Previous Close$407.72
Day High$389.80
Day Low$366.01
52 Week High$452.70
52 Week Low$100.02

About Arm Holdings plc American Depositary Shares

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.

8.3K employees
Listed September 14, 2023
TECHNOLOGYSEMICONDUCTORS

Company Details

Security TypeCommon Stock
ExchangeNASDAQ
CurrencyUSD
Round Lot
SICSEMICONDUCTORS
CIK
Composite FIGI
Share Class FIGI