ARM (NASDAQ:ARM) Shares Gap Up on Analyst Upgrade

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price gapped up prior to trading on Friday after HSBC upgraded the stock from a reduce rating to a buy rating. The stock had previously closed at $129.82, but opened at $136.90. HSBC now has a $205.00 price target on the stock, up from their previous price target of $90.00. ARM shares last traded at $134.7620, with a volume of 3,071,596 shares trading hands.

Other research analysts have also recently issued reports about the company. Royal Bank Of Canada decreased their price objective on ARM from $140.00 to $130.00 and set an “outperform” rating on the stock in a report on Thursday, February 5th. Evercore cut their target price on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research note on Thursday, February 5th. Morgan Stanley reduced their target price on ARM from $180.00 to $135.00 and set an “overweight” rating on the stock in a research report on Friday, January 23rd. Raymond James Financial began coverage on ARM in a report on Friday, November 21st. They set a “hold” rating for the company. Finally, Benchmark reissued a “hold” rating on shares of ARM in a research report on Thursday, February 5th. Seventeen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $162.82.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARM. GAMMA Investing LLC boosted its position in shares of ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after buying an additional 97 shares during the period. Grey Fox Wealth Advisors LLC purchased a new stake in shares of ARM in the 3rd quarter valued at $28,000. Mcguire Capital Advisors Inc. acquired a new position in ARM during the 4th quarter worth about $30,000. Navalign LLC purchased a new position in ARM during the 4th quarter valued at about $33,000. Finally, FWL Investment Management LLC purchased a new position in ARM during the 2nd quarter valued at about $34,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Stock Performance

The company has a market capitalization of $143.04 billion, a price-to-earnings ratio of 180.07, a P/E/G ratio of 8.86 and a beta of 4.11. The firm has a 50-day simple moving average of $118.21 and a two-hundred day simple moving average of $134.03.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter in the prior year, the company earned $0.39 earnings per share. The business’s quarterly revenue was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, equities analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

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.