Arm Holdings PLC Sponsored ADR (ARM) - What Are Analysts Saying About This Stock?

Key Points

• Analyst sentiment remains broadly positive: 19 of 27 analysts rate ARM a Buy, seven recommend Hold and one recommends Sell, resulting in a “Moderate Buy” consensus and an average 12-month target of $291.72.
• ARM beat quarterly estimates with revenue of $1.44 billion and EPS of $0.52; revenue rose 27.1% year over year, with strong licensing and data-center demand tied to AI.
• Risks include valuation and softer smartphone royalties: UBS and other analysts cut price targets despite maintaining positive ratings, as investors weigh high expectations against slowing handset-related royalty growth.

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-seven analysts that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and nineteen have issued a buy recommendation on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $291.72.

A number of equities analysts have weighed in on the stock. UBS Group decreased their price objective on shares of ARM from $320.00 to $270.00 and set a "buy" rating for the company in a research report on Thursday. New Street Research raised ARM from a "neutral" rating to a "buy" rating and set a $260.00 target price on the stock in a report on Thursday, July 30th. The Goldman Sachs Group reissued a "sell" rating and issued a $160.00 price objective on shares of ARM in a research note on Thursday. Royal Bank Of Canada reduced their price objective on ARM from $340.00 to $300.00 and set an "outperform" rating on the stock in a research note on Thursday. Finally, Needham & Company LLC reissued a "buy" rating and issued a $255.00 target price on shares of ARM in a report on Thursday.

ARM Stock Up 4.7%

ARM opened at $174.62 on Friday. The company has a 50-day simple moving average of $252.78 and a 200 day simple moving average of $229.93. ARM has a twelve month low of $100.02 and a twelve month high of $452.70. The stock has a market capitalization of $186.51 billion, a price-to-earnings ratio of 200.71, a P/E/G ratio of 5.84 and a beta of 3.93.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.48 by $0.04. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.38 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%. ARM's quarterly revenue was up 27.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.39 EPS. Sell-side analysts anticipate that ARM will post 1.17 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In other ARM news, CFO Jason Child sold 10,400 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer owned 153,442 shares of the company's stock, valued at $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Institutional investors and hedge funds have recently made changes to their positions in the business. Moors & Cabot Inc. grew its position in ARM by 13.0% in the third quarter. Moors & Cabot Inc. now owns 2,667 shares of the company's stock valued at $773,000 after acquiring an additional 306 shares during the last quarter. ICICI Prudential Asset Management Co Ltd lifted its position in shares of ARM by 1.5% in the 3rd quarter. ICICI Prudential Asset Management Co Ltd now owns 7,117 shares of the company's stock worth $2,062,000 after purchasing an additional 106 shares during the period. Allworth Financial LP grew its stake in shares of ARM by 12.3% during the 3rd quarter. Allworth Financial LP now owns 2,548 shares of the company's stock worth $738,000 after purchasing an additional 279 shares during the period. Fisher Asset Management LLC lifted its position in ARM by 18.4% in the third quarter. Fisher Asset Management LLC now owns 1,120 shares of the company's stock valued at $325,000 after buying an additional 174 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its stake in shares of ARM by 77.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 13,912 shares of the company's stock valued at $4,030,000 after purchasing an additional 6,053 shares during the last quarter. Institutional investors own 7.53% of the company's stock.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, ahead of estimates. Licensing revenue rose 50%, and data-center royalties doubled, highlighting demand for Arm technology in AI infrastructure. Arm Holdings' Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s push into its own AGI CPU could broaden its opportunity beyond chip-design royalties; management sees potential for up to $2 billion in revenue in fiscal 2027–28. Oracle has also said it plans to offer Arm AGI CPU instances in 2027. Arm Holdings' Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: UBS and JPMorgan retained Buy/Overweight ratings despite cutting their price targets, indicating continued analyst confidence in potential upside. UBS analyst recommendations JPMorgan price target
• Neutral Sentiment: AI and data-center stocks faced market-wide pressure after midterm-election results raised concerns about a possible slowdown in data-center investment. Major indexes recovered some losses Friday, offering a more supportive backdrop, though uncertainty remains. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: Investors focused on weaker smartphone-related royalties and concerns that handset demand may soften, offsetting Arm’s strong data-center growth. Royalty revenue is recurring, so slower growth here may temper expectations for future earnings. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns amplified the post-earnings selloff: investors questioned whether Arm’s high expectations are justified even after the quarterly revenue beat. UBS cut its target from $320 to $270, and JPMorgan lowered its target from $255 to $245. Arm stock slides as results stoke valuation doubts

About ARM

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them.

Arm's offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.

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