ARM (NASDAQ:ARM) Trading 11.3% Higher Following Analyst Upgrade

Key Points

• ARM shares jumped 11.3% after Bank of America raised its price target to $335 from $245, though it kept a neutral rating. The stock traded as high as $344.68, above its prior close of $307.43.
• Broader analyst sentiment remains upbeat, with several firms recently boosting targets or ratings, including Wells Fargo at $410 and HSBC upgrading ARM to buy. MarketBeat data shows a consensus Moderate Buy rating and an average price target of $239.
• Insider selling has been notable, with ARM executives including the CAO and CEO reducing holdings, and insiders selling 301,338 shares worth about $66.0 million over the last three months. Despite that, institutional investors still own a modest 7.53% of the company.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s share price traded up 11.3% during trading on Thursday after Bank of America raised their price target on the stock from $245.00 to $335.00. Bank of America currently has a neutral rating on the stock. ARM traded as high as $344.68 and last traded at $342.23. 8,636,793 shares traded hands during trading, a decline of 0% from the average session volume of 8,639,059 shares. The stock had previously closed at $307.43.

Several other equities analysts have also commented on ARM. HSBC upgraded ARM from a "reduce" rating to a "buy" rating and raised their price target for the company from $90.00 to $205.00 in a research note on Friday, March 20th. Morgan Stanley restated an "equal weight" rating and set a $150.00 price target (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. Jefferies Financial Group set a $290.00 price target on ARM in a research note on Thursday, May 21st. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of ARM in a research note on Thursday, May 7th. Finally, Wells Fargo & Company raised their price target on ARM from $255.00 to $410.00 and gave the company an "overweight" rating in a research note on Monday, June 1st. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $239.00.

Insider Buying and Selling

In other ARM news, CAO Laura Kathleen Bartels sold 11,306 shares of ARM stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total value of $4,439,866.20. Following the transaction, the chief accounting officer owned 12,135 shares in the company, valued at $4,765,414.50. The trade was a 48.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares in the company, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 301,338 shares of company stock valued at $66,030,158 over the last three months.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Wall Street upgrades and higher price targets are lifting sentiment around Arm Holdings (ARM), with analysts citing stronger demand prospects tied to data-center CPUs and agentic AI infrastructure. Arm Holdings Rallies As Agentic AI Spark Triggers Wave Of Wall Street Upgrades
• Positive Sentiment: Mizuho raised its price target on Arm Holdings (ARM), adding to the bullish analyst backdrop and reinforcing the market’s view that Arm is a key beneficiary of AI spending. Mizuho Raises PT on Arm Holdings (ARM), Here’s What You Should Know
• Positive Sentiment: Coverage noting Arm’s strong year-to-date performance and positioning in the AI infrastructure trade is keeping bullish momentum alive, as investors continue to re-rate the stock higher. Why Arm Holdings Stock Rallied on Thursday
• Neutral Sentiment: Bank of America raised its price target on Arm Holdings (ARM) to $335 from $245, but kept a neutral rating, suggesting optimism about valuation while stopping short of a full bullish call. Benzinga report on Bank of America target increase
• Neutral Sentiment: Related product news on Arm’s new mobile graphics and Unreal Engine capabilities may help highlight the company’s technology platform, but it appears less likely to be the main driver of the stock move today. Arm's impressive Neural Dawn is a ray-traced mobile game built for next-gen Arm Mali GPUs
• Negative Sentiment: Arm has also seen some volatility from a broader selloff in mobile-chip stocks, showing that macro and sector weakness can still pressure the shares despite the recent rally. Qualcomm Drops 6%, Arm Holdings Falls 5% as Mobile-Chip Stocks Slide in the Selloff

Hedge Funds Weigh In On ARM

Several institutional investors and hedge funds have recently added to or reduced their stakes in ARM. Syntax Research Inc. acquired a new stake in ARM in the first quarter worth about $30,000. Evelyn Partners Investment Management Services Ltd acquired a new stake in ARM in the first quarter worth about $30,000. FWL Investment Management LLC acquired a new stake in ARM in the second quarter worth about $34,000. Cassaday & Co Wealth Management LLC acquired a new stake in ARM in the first quarter worth about $40,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in ARM in the fourth quarter worth about $30,000. Hedge funds and other institutional investors own 7.53% of the company's stock.

ARM Price Performance

The firm has a market cap of $365.53 billion, a price-to-earnings ratio of 407.42, a P/E/G ratio of 11.80 and a beta of 3.78. The firm has a fifty day simple moving average of $235.49 and a two-hundred day simple moving average of $162.14.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. Equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

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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