ARM (NASDAQ:ARM) Given New $150.00 Price Target at The Goldman Sachs Group

Key Points

• Goldman Sachs raised its price target on ARM to $150 from $125 but kept a "sell" rating, a target that implies about a 28.9% downside from the prior close.
• ARM reported a quarterly beat and management flagged >$2 billion of demand for new Arm AGI data‑center CPUs, yet the stock tumbled about 11.1% to $210.98 on heavy volume as other analysts also raised targets and the consensus price target sits near $190.67 with a majority of analysts bearish-to-bullish ("Moderate Buy").
• Risks remain: management warned of smartphone weakness and potential supply/execution constraints for AI chips, and insiders (CEO and CFO) have recently sold shares, adding to near‑term volatility.

ARM (NASDAQ:ARM - Get Free Report) had its price objective boosted by investment analysts at The Goldman Sachs Group from $125.00 to $150.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "sell" rating on the stock. The Goldman Sachs Group's price target indicates a potential downside of 28.90% from the company's previous close.

A number of other research firms have also recently commented on ARM. TD Cowen reissued a "buy" rating on shares of ARM in a research note on Thursday. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $260.00 price objective (up from $175.00) on shares of ARM in a research note on Thursday. Mizuho upped their price objective on shares of ARM from $230.00 to $255.00 and gave the company an "outperform" rating in a research note on Wednesday. Guggenheim upped their price objective on shares of ARM from $240.00 to $255.00 and gave the company a "buy" rating in a research note on Thursday. Finally, HSBC raised shares of ARM from a "reduce" rating to a "buy" rating and upped their price objective for the company from $90.00 to $205.00 in a research note on Friday, March 20th. Nineteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $190.67.

ARM Trading Down 11.1%

Shares of ARM stock traded down $26.32 during trading hours on Thursday, reaching $210.98. The stock had a trading volume of 17,064,397 shares, compared to its average volume of 7,628,462. The firm has a market capitalization of $222.90 billion, a PE ratio of 282.63, a PEG ratio of 9.39 and a beta of 3.40. The stock's 50 day moving average is $152.53 and its 200 day moving average is $138.08. ARM has a twelve month low of $100.02 and a twelve month high of $239.50.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a net margin of 17.15% and a return on equity of 14.01%. As a group, sell-side analysts predict that ARM will post 0.85 earnings per share for the current year.

Insider Activity at ARM

In other news, CFO Jason Child sold 21,280 shares of the company's stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total value of $3,157,313.60. Following the transaction, the chief financial officer directly owned 174,706 shares in the company, valued at approximately $25,921,129.22. This represents a 10.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Rene A. Haas sold 23,867 shares of the company's stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares in the company, valued at approximately $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 83,712 shares of company stock worth $13,614,730.

Institutional Investors Weigh In On ARM

A number of hedge funds have recently added to or reduced their stakes in the business. DekaBank Deutsche Girozentrale acquired a new stake in ARM during the 1st quarter worth approximately $1,788,000. Spartan Wealth Advisory Services LLC acquired a new stake in shares of ARM in the 1st quarter valued at $245,000. Ascent Wealth Partners LLC raised its holdings in shares of ARM by 12.8% in the 1st quarter. Ascent Wealth Partners LLC now owns 13,217 shares of the company's stock valued at $1,999,000 after purchasing an additional 1,499 shares in the last quarter. Assetmark Inc. raised its holdings in shares of ARM by 24.7% in the 1st quarter. Assetmark Inc. now owns 81,627 shares of the company's stock valued at $12,349,000 after purchasing an additional 16,149 shares in the last quarter. Finally, SteelPeak Wealth LLC acquired a new stake in shares of ARM in the 1st quarter valued at $320,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly beat and upbeat guidance: ARM beat revenue and EPS estimates for the fiscal Q4 and guided Q1 revenue/adjusted EPS above consensus, which initially pushed the stock higher after hours. Earnings/Slides
• Positive Sentiment: Strong AI demand / $2B in customer demand: Management said >$2 billion of demand for its new Arm AGI data‑center CPUs, signaling a new, potentially higher‑margin revenue stream beyond licensing. WSJ: $2B Demand
• Positive Sentiment: Analyst upgrades and higher price targets: Multiple firms raised targets and kept bullish ratings (Rosenblatt, Needham, Mizuho), which supports upside narratives for AI/data‑center exposure. Benzinga: Analyst Notes
• Neutral Sentiment: Business model pivot risk/reward: Coverage notes ARM is shifting toward producing data‑center silicon (potentially higher returns) — this is strategic upside but introduces execution/competitive risk with customers. Seeking Alpha: Pivot Analysis
• Neutral Sentiment: Unusual options activity: Heavy call buying ahead of earnings suggests speculative bullish positioning; that can amplify volatility around news. MarketBeat: Options Note
• Negative Sentiment: Warning on smartphone market weakness: Management explicitly cited weaker handset demand and constrained supply in that segment — a direct threat to a meaningful licensing revenue stream. Investopedia: Smartphone Warning
• Negative Sentiment: Supply constraints for AI chip and execution worries: Management flagged possible inability to meet surging demand for the new AI CPU, which sparked concern that upside could be capped or delayed. Bloomberg/Yahoo: Supply Concerns
• Negative Sentiment: After‑hours reversal and volatility: The stock erased an after‑hours rally (reports show a full reversal of earlier gains), indicating traders are focused on the risk signaled by the smartphone/supply comments despite the otherwise strong quarter. Invezz: Overnight Reversal

About ARM

Arm Limited NASDAQ: ARM is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm's product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.

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