Mizuho Cuts ARM (NASDAQ:ARM) Price Target to $160.00

ARM (NASDAQ:ARM) had its price objective dropped by stock analysts at Mizuho from $190.00 to $160.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s price objective suggests a potential upside of 52.53% from the stock’s current price.

Other equities analysts also recently issued research reports about the stock. Oddo Bhf set a $170.00 price objective on shares of ARM in a report on Monday, January 5th. Bank of America reaffirmed a “neutral” rating and issued a $120.00 price target on shares of ARM in a report on Tuesday, January 13th. The Goldman Sachs Group lowered shares of ARM from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $160.00 to $120.00 in a report on Monday, December 15th. TD Cowen reaffirmed a “buy” rating on shares of ARM in a research report on Thursday, November 6th. Finally, Raymond James Financial began coverage on ARM in a report on Friday, November 21st. They issued a “hold” rating on the stock. Sixteen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, ARM has an average rating of “Moderate Buy” and a consensus price target of $164.86.

ARM Price Performance

Shares of NASDAQ ARM opened at $104.90 on Thursday. The business has a fifty day moving average price of $117.81 and a 200 day moving average price of $138.52. ARM has a 1-year low of $80.00 and a 1-year high of $183.16. The stock has a market capitalization of $110.83 billion, a P/E ratio of 134.49, a price-to-earnings-growth ratio of 6.26 and a beta of 4.35.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.33 by $0.06. ARM had a net margin of 18.81% and a return on equity of 15.03%. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same period in the prior year, the firm posted $0.30 earnings per share. The company’s quarterly revenue was up 34.5% on a year-over-year basis. As a group, equities research analysts anticipate that ARM will post 0.9 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ARM

Several hedge funds have recently bought and sold shares of ARM. GAMMA Investing LLC increased its holdings in shares of ARM by 126.0% during the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after purchasing an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC purchased a new stake in ARM during the third quarter worth $28,000. Huntington National Bank acquired a new stake in ARM during the second quarter valued at $30,000. Navalign LLC acquired a new stake in ARM during the fourth quarter valued at $33,000. Finally, FWL Investment Management LLC purchased a new position in ARM in the second quarter valued at $34,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 beat on the headline numbers — ARM reported $0.43 EPS vs. $0.41 consensus and $1.24B revenue vs. $1.23B, driven by AI demand that lifted total revenue to a record. MarketBeat Earnings Summary
• Positive Sentiment: ARM guided FYQ4 above Street estimates — EPS guide of $0.540–$0.620 (consensus ~$0.490) and revenue guidance of $1.4–$1.5B, signaling continued strength from AI workloads. Reuters: Forecasts Quarterly Revenue Above Estimates
• Neutral Sentiment: Management highlighted AI as a durable driver (data centers to phones) and scheduled an “Arm Everywhere” event on March 24 to outline strategy — potential catalyst if new partnerships or product roadmaps are announced. BusinessWire: Arm Everywhere Event
• Negative Sentiment: Licensing revenue narrowly missed estimates — the shortfall drove a sharp after‑hours selloff (reported as a ~8% drop after hours), offsetting the topline beat. This licensing weakness is the immediate cause of negative investor reaction. CNBC: Shares Plunge After Licensing Miss
• Negative Sentiment: Broader industry headwinds: memory shortages are expected to constrain smartphone shipments, which weighs on ARM’s phone-related licensing and chip‑design demand and amplifies pressure from peers like Qualcomm. Analysts cited this as an additional near‑term drag. Reuters: Memory Shortage Hurting Chip Sales
• Neutral Sentiment: Mixed profitability signal — some outlets note profit fell year‑over‑year despite revenue growth, reflecting margin dynamics investors will watch as AI revenue scales. WSJ: Profit Falls Despite Revenue Growth

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.