Wells Fargo & Company Issues Pessimistic Forecast for ARM (NASDAQ:ARM) Stock Price

Key Points

• Wells Fargo cut its price target on ARM from $410 to $350 while keeping an overweight rating, though that still implies about 22.6% upside from the current price.
• Other Wall Street firms have also adjusted their views recently, with several lowering targets or downgrading the stock; overall, ARM still has a Moderate Buy consensus and a $297.65 average price target.
• ARM shares fell to $285.55 in Wednesday trading, and the stock remains highly valued with a 339.35 P/E ratio and a 3.76 beta, highlighting both premium expectations and volatility.

ARM (NASDAQ:ARM - Get Free Report) had its price target dropped by equities researchers at Wells Fargo & Company from $410.00 to $350.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Wells Fargo & Company's target price suggests a potential upside of 22.57% from the company's current price.

Other analysts have also recently issued research reports about the company. UBS Group lowered their price objective on ARM from $470.00 to $360.00 and set a "buy" rating for the company in a research report on Monday. New Street Research lowered ARM from a "buy" rating to a "neutral" rating in a research report on Thursday, June 18th. Guggenheim increased their price target on ARM from $240.00 to $255.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. HSBC downgraded ARM from a "buy" rating to a "hold" rating and raised their price target for the stock from $255.00 to $315.00 in a report on Tuesday, July 14th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of ARM in a report on Friday. Seventeen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $297.65.

ARM Stock Performance

NASDAQ:ARM traded down $4.18 during midday trading on Wednesday, reaching $285.55. 1,737,097 shares of the stock traded hands, compared to its average volume of 8,673,024. ARM has a 12-month low of $100.02 and a 12-month high of $452.70. The business has a 50-day moving average of $326.92 and a two-hundred day moving average of $205.61. The stock has a market capitalization of $304.99 billion, a PE ratio of 339.35, a price-to-earnings-growth ratio of 9.84 and a beta of 3.76.

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

Insider Transactions at ARM

In related news, CFO Jason Child sold 31,920 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the transaction, the chief financial officer owned 174,232 shares in the company, valued at $39,470,517.28. This trade represents a 15.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 sale, the chief accounting officer directly owned 12,135 shares of the company's stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 217,626 shares of company stock worth $52,415,428 over the last 90 days.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of ARM. GoalFusion Wealth Management LLC acquired a new position in ARM in the 2nd quarter worth approximately $321,000. Redhawk Wealth Advisors Inc. acquired a new stake in ARM during the 2nd quarter valued at approximately $375,000. Wealthcare Advisory Partners LLC acquired a new stake in ARM during the 2nd quarter valued at approximately $326,000. First Bank & Trust purchased a new stake in shares of ARM in the 2nd quarter valued at $274,000. Finally, Vertrix Wealth Management LLC acquired a new stake in shares of ARM in the second quarter worth $292,000. Institutional investors and hedge funds own 7.53% of the company's stock.

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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