JPMorgan Chase & Co. Has Lowered Expectations for ARM (NASDAQ:ARM) Stock Price

Key Points

• JPMorgan cut its ARM price target from $255 to $245 but maintained an “overweight” rating, implying 46.95% upside from the prior close.
• Analyst views remain broadly positive: ARM has a “Moderate Buy” consensus and a $293.72 average target, though several firms recently reduced their targets.
• ARM shares fell $25.08 to $166.72 Thursday. The company nevertheless beat quarterly earnings and revenue estimates, with revenue up 27.1% year over year.

ARM (NASDAQ:ARM - Get Free Report) had its target price dropped by analysts at JPMorgan Chase & Co. from $255.00 to $245.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target indicates a potential upside of 46.95% from the company's previous close.

A number of other research analysts also recently weighed in on the company. Piper Sandler reiterated an "overweight" rating and set a $270.00 price target (down from $320.00) on shares of ARM in a report on Thursday. Rosenblatt Securities decreased their price objective on ARM from $270.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, July 31st. UBS Group lowered their target price on ARM from $360.00 to $320.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. HSBC reaffirmed a "hold" rating and set a $215.00 target price on shares of ARM in a research note on Thursday. Finally, KeyCorp increased their price target on shares of ARM from $300.00 to $430.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Nineteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, ARM has a consensus rating of "Moderate Buy" and a consensus price target of $293.72.

ARM Price Performance

ARM stock traded down $25.08 during midday trading on Thursday, reaching $166.72. The stock had a trading volume of 15,330,146 shares, compared to its average volume of 7,483,889. The firm's fifty day simple moving average is $256.08 and its two-hundred day simple moving average is $229.28. ARM has a twelve month low of $100.02 and a twelve month high of $452.70. The firm has a market cap of $178.07 billion, a price-to-earnings ratio of 171.88, a PEG ratio of 5.91 and a beta of 3.93.

ARM (NASDAQ:ARM - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.04. The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.38 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company's revenue was up 27.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.39 EPS. As a group, sell-side analysts predict that ARM will post 1.17 EPS for the current fiscal year.

Insider Activity

In other news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several large investors have recently bought and sold shares of the stock. Kings Path Partners LLC bought a new position in shares of ARM in the third quarter valued at about $29,000. Evelyn Partners Investment Management Services Ltd bought a new position in ARM in the first quarter valued at approximately $30,000. Cassaday & Co Wealth Management LLC bought a new position in shares of ARM in the 1st quarter worth $40,000. Sterling Capital Management LLC grew its position in shares of ARM by 1,400.0% during the 1st quarter. Sterling Capital Management LLC now owns 375 shares of the company's stock worth $57,000 after buying an additional 350 shares during the period. Finally, CX Institutional acquired a new position in ARM during the third quarter valued at approximately $58,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: AI and data-center demand remain strong: data-center royalties more than doubled, licensing revenue rose about 50%, and Arm reported record chip shipments. Management also expressed confidence in its AGI CPU opportunity, with identified demand that could support up to $2 billion in revenue across fiscal 2027–28. Arm Holdings' Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s revenue and earnings beat analysts’ estimates, and its outlook for the next quarter was reported above expectations, reflecting continued AI-related demand. Arm forecasts third-quarter revenue above estimates
• Neutral Sentiment: Longer-term AI prospects include Oracle’s plan to offer Arm AGI CPU instances in 2027 and Arm’s claim that its chips power more than half of hyperscaler servers; the financial impact will depend on adoption and production volumes. Oracle Cloud plans to offer Arm AGI CPU instances in 2027
• Negative Sentiment: Investors were concerned that smartphone royalties were weaker than expected, with rising memory costs potentially pressuring handset demand. Overall recurring royalty growth also lagged licensing growth, highlighting that chip shipments do not necessarily convert quickly into higher royalty revenue. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: With expectations and valuation still elevated, the earnings beat may not have been enough to satisfy investors seeking faster, broader royalty growth. Chip-sector concerns—including possible packaging-substrate constraints—added to pressure on the shares. Arm Stock Has an Apple and Android Problem

ARM Company Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company's offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.

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