ARM (NASDAQ:ARM) Receives "Hold" Rating from Needham & Company LLC

Key Points

• Needham & Company LLC has reaffirmed its "hold" rating for ARM's stock amid varied ratings from other analysts, indicating a cautious outlook on the company's performance.
• ARM's stock ratings are diverse, with one sell rating, seven holds, nineteen buys, and two strong buys, pointing to a consensus average rating of "Moderate Buy" with a target price of $163.83.
• The company saw a 12.1% increase in revenue year-over-year, reporting $1.05 billion in revenue in its latest quarterly earnings, surpassing analyst estimates.

ARM (NASDAQ:ARM - Get Free Report)'s stock had its "hold" rating reaffirmed by research analysts at Needham & Company LLC in a research report issued on Thursday,Benzinga reports.

Other equities analysts have also issued reports about the stock. Bank of America dropped their price target on shares of ARM from $144.00 to $135.00 and set a "buy" rating on the stock in a research note on Thursday, May 8th. BNP Paribas raised ARM from a "neutral" rating to an "outperform" rating and raised their target price for the company from $110.00 to $210.00 in a report on Wednesday, July 16th. BNP Paribas Exane upgraded ARM from a "neutral" rating to an "outperform" rating and set a $210.00 price target for the company in a research report on Wednesday, July 16th. Raymond James Financial dropped their price objective on ARM from $175.00 to $140.00 and set an "outperform" rating for the company in a research report on Thursday, May 8th. Finally, Wells Fargo & Company lifted their price target on ARM from $145.00 to $175.00 and gave the company an "overweight" rating in a report on Monday, July 21st. One analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, ARM has an average rating of "Moderate Buy" and a consensus target price of $163.83.

ARM Price Performance

NASDAQ:ARM opened at $163.32 on Thursday. The firm has a market cap of $172.55 billion, a price-to-earnings ratio of 217.76, a price-to-earnings-growth ratio of 9.36 and a beta of 4.19. The company has a 50 day moving average price of $146.56 and a 200-day moving average price of $134.48. ARM has a 1-year low of $80.00 and a 1-year high of $182.88.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.34 by $0.01. ARM had a net margin of 19.76% and a return on equity of 17.97%. The company had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the previous year, the firm earned $0.40 EPS. The firm's revenue was up 12.1% compared to the same quarter last year. On average, sell-side analysts anticipate that ARM will post 0.9 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ARM

Several institutional investors have recently modified their holdings of the business. Sowell Financial Services LLC purchased a new stake in ARM during the first quarter valued at about $229,000. Envestnet Asset Management Inc. grew its stake in shares of ARM by 0.8% in the fourth quarter. Envestnet Asset Management Inc. now owns 43,124 shares of the company's stock worth $5,320,000 after purchasing an additional 353 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of ARM by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 108,531 shares of the company's stock worth $13,388,000 after purchasing an additional 848 shares during the last quarter. Spire Wealth Management grew its stake in shares of ARM by 15.7% in the first quarter. Spire Wealth Management now owns 1,174 shares of the company's stock worth $125,000 after purchasing an additional 159 shares during the last quarter. Finally, Cerity Partners LLC grew its stake in shares of ARM by 19.2% in the first quarter. Cerity Partners LLC now owns 14,671 shares of the company's stock worth $1,567,000 after purchasing an additional 2,358 shares during the last quarter. 7.53% of the stock is owned by institutional investors.

ARM Company Profile

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.

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