Financial Analysis: Arm Holdings plc. ADR (ARM)’s Ratios Unveil Key Insights

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As of close of business last night, Arm Holdings plc. ADR’s stock clocked out at $160.32, up 0.49% from its previous closing price of $159.54. In other words, the price has increased by $0.49 from its previous closing price. On the day, 4.79 million shares were traded.

Ratios:

To gain a deeper understanding of ARM’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 63.26 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 259.97. For the most recent quarter (mrq), Quick Ratio is recorded 4.96 and its Current Ratio is at 4.96. In the meantime, Its Debt-to-Equity ratio is 0.04 whereas as Long-Term Debt/Eq ratio is at 0.04.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, UBS on November 25, 2024, initiated with a Buy rating and assigned the stock a target price of $160.

On November 22, 2024, Wells Fargo started tracking the stock assigning a Overweight rating and target price of $155.

TD Cowen reiterated its Buy rating for the stock on November 07, 2024, while the target price for the stock was revised from $150 to $165.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Jan 22 ’25 when Child Jason bought 10,080 shares for $175.00 per share.

Child Jason bought 20,160 shares of ARM for $2,751,840 on Nov 21 ’24. On Nov 08 ’24, another insider, Child Jason, who serves as the Officer of the company, bought 20,160 shares for $148.50 each.

Valuation Measures:

As of this moment, Arm’s Price-to-Earnings (P/E) ratio for their current fiscal year is 211.53, and their Forward P/E ratio for the next fiscal year is 78.66. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 7.62. For the stock, the TTM Price-to-Sale (P/S) ratio is 45.74 while its Price-to-Book (P/B) ratio in mrq is 26.32.

Stock Price History:

Over the past 52 weeks, ARM has reached a high of $188.75, while it has fallen to a 52-week low of $85.61. The 50-Day Moving Average of the stock is 8.86%, while the 200-Day Moving Average is calculated to be 13.63%.

Shares Statistics:

A total of 1.05B shares are outstanding, with a floating share count of 1.05B. Insiders hold about 0.49% of the company’s shares, while institutions hold 5.70% stake in the company.

Earnings Estimates

The stock of Arm Holdings plc. ADR (ARM) is currently drawing attention from 26.0 analysts actively involved in the ongoing evaluation and rating process.The consensus estimate for the next quarter is $0.42, with high estimates of $0.51 and low estimates of $0.32.

Analysts are recommending an EPS of between $1.7 and $1.53 for the fiscal current year, implying an average EPS of $1.61. EPS for the following year is $2.02, with 34.0 analysts recommending between $2.26 and $1.73.

Revenue Estimates

In the current quarter, 25 analysts expect revenue to total $1.23B. It ranges from a high estimate of $1.25B to a low estimate of $1.18B. As of the current estimate, Arm Holdings plc. ADR’s year-ago sales were $928MFor the next quarter, 25 analysts are estimating revenue of $1.1B. There is a high estimate of $1.2B for the next quarter, whereas the lowest estimate is $966.28M.

A total of 36 analysts have provided revenue estimates for ARM’s current fiscal year. The highest revenue estimate was $4.04B, while the lowest revenue estimate was $3.96B, resulting in an average revenue estimate of $4B. In the same quarter a year ago, actual revenue was $3.23BBased on 37 analysts’ estimates, the company’s revenue will be $4.93B in the next fiscal year. The high estimate is $5.36B and the low estimate is $4.65B.

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