ARM (NASDAQ:ARM) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its target on ARM to $255 and maintains an "overweight" rating, implying roughly an 18.7% upside
• ARM beat quarterly estimates and management said there is > $2 billion of demand for its new Arm AGI data‑center CPUs, but it warned of smartphone weakness and potential supply/execution constraints — the stock was volatile, trading down 9.5% to $214.77 and erasing an after‑hours rally.
• Insiders have been selling: the CEO and CFO sold large stakes in late March, and insiders disposed of 83,712 shares totaling about $13.6 million over the past 90 days.

ARM (NASDAQ:ARM - Get Free Report) had its target price hoisted by equities researchers at Wells Fargo & Company from $220.00 to $255.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 18.73% from the company's current price.

Several other equities analysts have also recently commented on ARM. KeyCorp reaffirmed an "overweight" rating on shares of ARM in a report on Thursday, February 5th. Evercore decreased their price objective on shares of ARM from $215.00 to $170.00 and set an "outperform" rating on the stock in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of ARM in a research report on Thursday. HSBC upgraded shares of ARM from a "reduce" rating to a "buy" rating and raised their price objective for the company from $90.00 to $205.00 in a research report on Friday, March 20th. Finally, Susquehanna boosted their target price on ARM from $170.00 to $210.00 and gave the stock a "positive" rating in a research report on Thursday, April 16th. Nineteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $186.08.

ARM Trading Down 9.5%

ARM traded down $22.53 on Thursday, reaching $214.77. The company had a trading volume of 13,548,984 shares, compared to its average volume of 7,581,934. The company has a market capitalization of $226.90 billion, a P/E ratio of 287.09, a PEG ratio of 9.39 and a beta of 3.40. The company has a fifty day moving average of $152.53 and a 200-day moving average of $138.08. ARM has a one year low of $100.02 and a one year high of $239.50.

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

Insider Activity

In related news, CEO Rene A. Haas sold 23,867 shares of the business's stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares in the company, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jason Child sold 21,280 shares of the company's stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the sale, the chief financial officer directly owned 174,706 shares in the company, valued at approximately $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 83,712 shares of company stock valued at $13,614,730 in the last 90 days.

Institutional Trading of ARM

Several institutional investors and hedge funds have recently bought and sold shares of the business. DekaBank Deutsche Girozentrale bought a new position in ARM during the first quarter worth $1,788,000. Spartan Wealth Advisory Services LLC acquired a new position in ARM in the 1st quarter valued at about $245,000. Ascent Wealth Partners LLC grew its stake in 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 buying an additional 1,499 shares during the last quarter. Assetmark Inc. raised its holdings in 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 acquiring an additional 16,149 shares during the period. Finally, SteelPeak Wealth LLC acquired a new stake in ARM during the first quarter worth approximately $320,000. Institutional investors own 7.53% of the company's stock.

ARM News Roundup

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

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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