KeyCorp Forecasts Strong Price Appreciation for ARM (NASDAQ:ARM) Stock

Key Points

• KeyCorp raised its target on ARM to $300 (from $170), implying about a 35.6% upsideModerate Buy (avg. analyst target ~$189.42 with 18 Buys, 6 Holds, 1 Sell).
• ARM reported strong FY26 results with revenue and adjusted profit up ~23% YoY, disclosed >$2B of demand for its new data‑center/AGI CPU and guided Q1 FY27 above Street expectations, supporting the AI/silicon growth narrative.
• Risks remain: the stock traded down ~6.8% to $221.18 amid volatile after‑hours moves, insiders sold shares, and concerns persist over lofty valuation (P/E ~293), smartphone licensing weakness and potential supply/execution constraints.

ARM (NASDAQ:ARM - Get Free Report) had its target price boosted by stock analysts at KeyCorp from $170.00 to $300.00 in a report issued on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the stock. KeyCorp's price objective indicates a potential upside of 35.63% from the company's current price.

A number of other research analysts also recently commented on the stock. Needham & Company LLC increased their price target on shares of ARM from $200.00 to $255.00 and gave the company a "buy" rating in a report on Thursday. Raymond James Financial reissued an "outperform" rating on shares of ARM in a research note on Thursday. Susquehanna upped their price objective on ARM from $170.00 to $210.00 and gave the company a "positive" rating in a research report on Thursday, April 16th. Barclays reaffirmed an "overweight" rating on shares of ARM in a research note on Thursday. Finally, New Street Research upgraded ARM from a "neutral" rating to a "buy" rating in a report on Thursday, February 5th. Eighteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $189.42.

ARM Trading Down 6.8%

ARM traded down $16.12 during trading hours on Thursday, hitting $221.18. The company's stock had a trading volume of 9,661,155 shares, compared to its average volume of 7,486,847. The stock has a market cap of $233.68 billion, a price-to-earnings ratio of 292.94, a P/E/G ratio of 9.39 and a beta of 3.40. The business's 50-day moving average price is $152.53 and its 200-day moving average price is $138.08. ARM has a 12 month low of $100.02 and a 12 month high of $239.50.

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

Insider Activity

In other ARM news, CFO Jason Child sold 21,280 shares of the business's stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the transaction, the chief financial officer owned 174,706 shares in the company, valued at $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Rene A. Haas sold 23,867 shares of the company's stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 290,965 shares in the company, valued at approximately $46,894,829.05. This represents a 7.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 83,712 shares of company stock worth $13,614,730 over the last quarter.

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of ARM. Compound Planning Inc. lifted its position in shares of ARM by 4.6% during the third quarter. Compound Planning Inc. now owns 1,569 shares of the company's stock worth $222,000 after purchasing an additional 69 shares during the last quarter. Ritholtz Wealth Management grew its holdings in shares of ARM by 3.0% in the third quarter. Ritholtz Wealth Management now owns 2,439 shares of the company's stock worth $345,000 after purchasing an additional 70 shares during the last quarter. Rathbones Group PLC increased its stake in ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company's stock worth $1,493,000 after buying an additional 70 shares during the period. Nwam LLC increased its stake in ARM by 4.3% in the 3rd quarter. Nwam LLC now owns 1,711 shares of the company's stock worth $242,000 after buying an additional 71 shares during the period. Finally, Kovack Advisors Inc. lifted its holdings in ARM by 2.0% during the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company's stock valued at $510,000 after buying an additional 72 shares in the last quarter. Hedge funds and other 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: 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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