ARM (NASDAQ:ARM) Shares Up 8% - Here's What Happened

Key Points

• Shares jumped ~8% intraday to about $115.69 (high $117.28) on Wednesday, with ~4.32M shares traded—about 23% below the stock's average daily volume.
• MarketBeat shows a consensus rating of "Moderate Buy" with a $175.50 average target; analysts have been mixed—UBS trimmed its target to $195, Citigroup downgraded to Hold, and Susquehanna upgraded to Positive ($150 target).
• ARM recently beat expectations with Q results of $0.39 EPS vs $0.33 est and $1.14B revenue (+34.5% YoY), and set Q3 2026 guidance of $0.370–0.450 EPS while analysts expect about 0.9 EPS for the year.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) rose 8% during mid-day trading on Wednesday . The company traded as high as $117.28 and last traded at $115.6940. Approximately 4,322,030 shares changed hands during trading, a decline of 23% from the average daily volume of 5,645,658 shares. The stock had previously closed at $107.17.

Wall Street Analyst Weigh In

A number of analysts have weighed in on ARM shares. UBS Group reduced their target price on ARM from $200.00 to $195.00 and set a "buy" rating on the stock in a research note on Thursday, November 6th. Weiss Ratings reissued a "hold (c)" rating on shares of ARM in a research report on Wednesday, October 8th. Citigroup lowered shares of ARM from a "buy" rating to a "hold" rating in a research report on Tuesday, January 13th. Susquehanna upgraded ARM from a "neutral" rating to a "positive" rating and set a $150.00 price target for the company in a report on Wednesday. Finally, Needham & Company LLC restated a "hold" rating on shares of ARM in a research note on Thursday, November 6th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $175.50.

ARM Trading Up 6.7%

The company has a 50-day moving average price of $123.53 and a 200 day moving average price of $141.46. The stock has a market capitalization of $120.81 billion, a P/E ratio of 146.60, a price-to-earnings-growth ratio of 6.34 and a beta of 4.34.

ARM (NASDAQ:ARM - Get Free Report) last posted its earnings results on Wednesday, November 5th. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.06. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.The firm's quarterly revenue was up 34.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.30 earnings per share. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. As a group, research analysts expect that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

Several institutional investors and hedge funds have recently bought and sold shares of ARM. Rheos Capital Works Inc. lifted its holdings in shares of ARM by 20.1% during the 4th quarter. Rheos Capital Works Inc. now owns 179,600 shares of the company's stock valued at $19,632,000 after purchasing an additional 30,000 shares during the last quarter. Newbridge Financial Services Group Inc. increased its position in ARM by 54.0% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 90,145 shares of the company's stock valued at $9,854,000 after buying an additional 31,610 shares in the last quarter. Rathbones Group PLC raised its stake in ARM by 4,638.8% in the fourth quarter. Rathbones Group PLC now owns 500,043 shares of the company's stock valued at $54,660,000 after buying an additional 489,491 shares during the last quarter. Tran Capital Management L.P. acquired a new stake in ARM in the fourth quarter worth about $20,714,000. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its stake in shares of ARM by 18.0% during the fourth quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 3,096 shares of the company's stock worth $338,000 after acquiring an additional 473 shares during the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

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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