Arm Holdings plc (NDAQ:ARMHY) shares rose $0.37, or 4.32%, to $8.94 today after the company announced that it repurchased a substantial amount of its own stock during the past few days. Shareholders took this as a sign that the company feels its shares are undervalued.

The microprocessor manufacturer announced that it had repurchased 750,000 shares three times during August on the 28th, 29th and 30th. The total number of shares repurchased amounted to 2,250,000 shares at a price of roughly 315,000,000 pence. The new stake amounts to roughly a 10 percent increase in its treasury holdings.

Analysts are also bullish on Arm, which holds a leadership position in the mobile processing market. The company receives royalties on its designs that let it achieve margins of 100% and provide investors with a rapidly expanding stream of profits over the long-term. Meanwhile, the market for the company's products appears to be expanding rapidly at least in the medium term. Combined, these factors make ARMHY a company worth watching!

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