Morgan Stanley Issues Pessimistic Forecast for ARM (NASDAQ:ARM) Stock Price

Key Points

• Morgan Stanley has lowered its price target for ARM (NASDAQ:ARM) from $180 to $171, indicating a potential upside of 5.51% from the current stock price.
• Despite the downgrade, the stock remains rated as "overweight" by Morgan Stanley, with a consensus rating of "Moderate Buy" from analysts.
• ARM posted quarterly earnings of $0.35 per share, slightly exceeding estimates, with a year-over-year revenue increase of 12.1% to $1.05 billion.

ARM (NASDAQ:ARM - Get Free Report) had its price objective lowered by Morgan Stanley from $180.00 to $171.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's price objective indicates a potential upside of 5.51% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Seaport Res Ptn raised ARM to a "strong-buy" rating in a research report on Monday, August 11th. Needham & Company LLC reissued a "hold" rating on shares of ARM in a report on Thursday, July 31st. The Goldman Sachs Group started coverage on shares of ARM in a report on Thursday, July 10th. They set a "neutral" rating and a $160.00 price objective for the company. UBS Group dropped their target price on shares of ARM from $185.00 to $175.00 and set a "buy" rating on the stock in a research note on Thursday, July 31st. Finally, Rosenblatt Securities restated a "buy" rating and set a $180.00 price target on shares of ARM in a research note on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $167.43.

ARM Price Performance

ARM opened at $162.07 on Thursday. ARM has a fifty-two week low of $80.00 and a fifty-two week high of $182.88. The firm has a market capitalization of $171.23 billion, a P/E ratio of 249.48, a PEG ratio of 9.69 and a beta of 4.10. The company's 50-day moving average is $142.85 and its 200 day moving average is $134.51.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.34 by $0.01. ARM had a net margin of 16.96% and a return on equity of 15.56%. The firm had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter last year, the business posted $0.40 EPS. The company's revenue for the quarter was up 12.1% on a year-over-year basis. On average, equities research analysts expect that ARM will post 0.9 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Park Avenue Securities LLC boosted its holdings in shares of ARM by 45.3% in the first quarter. Park Avenue Securities LLC now owns 5,217 shares of the company's stock worth $557,000 after acquiring an additional 1,627 shares during the period. Farther Finance Advisors LLC boosted its stake in ARM by 85.7% in the 1st quarter. Farther Finance Advisors LLC now owns 1,616 shares of the company's stock worth $173,000 after purchasing an additional 746 shares during the period. GPS Wealth Strategies Group LLC grew its holdings in ARM by 1.3% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 22,467 shares of the company's stock valued at $2,399,000 after buying an additional 296 shares in the last quarter. Baker Chad R bought a new stake in shares of ARM during the first quarter valued at about $1,298,000. Finally, RFG Holdings Inc. lifted its holdings in shares of ARM by 57.0% in the first quarter. RFG Holdings Inc. now owns 4,279 shares of the company's stock worth $457,000 after buying an additional 1,554 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.

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