ARM (NASDAQ:ARM) Stock Price Expected to Rise, Rosenblatt Securities Analyst Says

Key Points

• Rosenblatt raised its price target to $270 (from $175) and kept a "buy" rating, implying about a 24.3% upside, while the Street average target is $184 with a consensus of "Moderate Buy" (18 Buy, 6 Hold, 1 Sell).
• Shares dropped 8.5% to $217.22 despite strong FY26 results and management saying there is >$2B of demand for its AGI CPU; bullish analyst upgrades and heavy call buying supported gains, but phone-market weakness, supply/execution risk and a lofty valuation pressured the stock.
• Insiders (including the CEO and CFO) have been selling under Rule 10b5-1 plans—83,712 shares sold in the last 90 days worth about $13.6M—and institutional ownership is relatively low at ~7.5%.

ARM (NASDAQ:ARM - Get Free Report) had its target price raised by equities researchers at Rosenblatt Securities from $175.00 to $270.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Rosenblatt Securities' price objective indicates a potential upside of 24.30% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the stock. The Goldman Sachs Group lifted their price target on shares of ARM from $110.00 to $125.00 and gave the company a "sell" rating in a research note on Thursday, April 9th. KeyCorp reaffirmed an "overweight" rating on shares of ARM in a research note on Thursday, February 5th. TD Cowen lowered their price objective on ARM from $190.00 to $165.00 and set a "buy" rating on the stock in a report on Thursday, February 5th. Wells Fargo & Company increased their target price on ARM from $175.00 to $220.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of ARM in a research note on Monday, April 20th. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $184.00.

ARM Stock Down 8.5%

Shares of NASDAQ:ARM traded down $20.08 during trading on Thursday, reaching $217.22. 6,301,202 shares of the company's stock traded hands, compared to its average volume of 7,492,740. ARM has a fifty-two week low of $100.02 and a fifty-two week high of $239.50. The company has a 50-day simple moving average of $152.53 and a 200-day simple moving average of $138.08. The firm has a market cap of $229.50 billion, a PE ratio of 294.06, a P/E/G ratio of 9.39 and a beta of 3.40.

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

Insider Buying and Selling at ARM

In other ARM news, CEO Rene A. Haas sold 9,299 shares of the firm's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total value of $1,495,744.15. Following the completion of the sale, the chief executive officer directly owned 273,680 shares of the company's stock, valued at $44,021,428. This trade represents a 3.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jason Child sold 21,280 shares of the stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total transaction of $3,830,400.00. Following the transaction, the chief financial officer directly owned 153,426 shares of the company's stock, valued at approximately $27,616,680. This trade represents a 12.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 83,712 shares of company stock valued at $13,614,730.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of ARM. Grey Fox Wealth Advisors LLC acquired a new stake in shares of ARM during the third quarter worth about $28,000. Syntax Research Inc. purchased a new stake in ARM during the 1st quarter worth approximately $30,000. FWL Investment Management LLC acquired a new stake in ARM during the 2nd quarter worth approximately $34,000. Mcguire Capital Advisors Inc. purchased a new position in ARM in the 4th quarter valued at approximately $30,000. Finally, Strategic Investment Solutions Inc. IL grew its stake in shares of ARM by 238.1% in the third quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company's stock worth $40,000 after acquiring an additional 200 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly/FY26 beat and growth: ARM posted FY26 results with revenue and adjusted profit up ~23% YoY, beating estimates and showing margin improvement as stock‑based comp declines — a core reason investors bid the stock higher. Arm FY2026 Earnings: A Future Bet On AI Silicon
• Positive Sentiment: Big demand for new data‑center CPU and upbeat guidance: Management disclosed >$2B of customer demand for its AGI CPU and guided Q1 FY27 revenue/EPS above Street expectations — supporting growth and higher-margin silicon revenue. Arm Holdings Reports Higher Profit, Strong Demand for New CPUs
• Positive Sentiment: Analyst upgrades/price target lifts: Brokers (e.g., Needham, Mizuho) raised price targets and reiterated Buy/Outperform as the AI narrative and guidance reinforced upgrades. Benzinga coverage of analyst moves
• Positive Sentiment: Bullish derivatives flow: Unusually large call buying was reported (big increase vs. avg), signaling institutional/leveraged bullish positioning into the print. Options activity report
• Neutral Sentiment: Investor materials posted: Full earnings slide deck and call transcript are available for diligence — useful for modeling ARM’s margin cadence as it moves from IP licensing toward chip sales. Q4 presentation
• Negative Sentiment: Phone-market headwinds: Management warned smartphone demand is weak, which pressures a sizable licensing revenue source and tempers upside if phones stay soft. Arm Warns of Phone Market Weakness, With AI Helping Offset Slump
• Negative Sentiment: Supply / execution risk: Firms flagged that demand for ARM’s in‑house chips may outstrip supply or execution capacity, prompting concerns that growth could be delivery‑constrained — a key reason some of the after‑hours gains were erased. Why did ARM stock wipe out its entire 13% after-hours gain overnight?
• Negative Sentiment: Valuation scrutiny: Even with beats, several pieces noted ARM’s lofty multiples and asked whether the pivot to selling silicon justifies the current rich valuation — a potential cap on near-term upside. Arm’s Record AI Results Test Lofty Valuation And Supply Constraints

ARM Company Profile

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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