ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Given Average Recommendation of “Moderate Buy” by Analysts

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) has been given a consensus recommendation of “Moderate Buy” by the twenty-six brokerages that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and seventeen have given a buy rating to the company. The average 1 year target price among analysts that have covered the stock in the last year is $297.6522.

ARM has been the topic of a number of research analyst reports. HSBC downgraded ARM from a “buy” rating to a “hold” rating and upped their target price for the stock from $255.00 to $315.00 in a report on Tuesday, July 14th. Royal Bank Of Canada raised their target price on ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. TD Cowen lifted their price target on ARM from $265.00 to $475.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. UBS Group reduced their price target on ARM from $470.00 to $360.00 and set a “buy” rating on the stock in a research note on Monday, July 20th. Finally, Rosenblatt Securities increased their price objective on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 7th.

Insider Buying and Selling at ARM

In related news, CAO Laura Kathleen Bartels sold 11,306 shares of ARM stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the completion of the transaction, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at $4,765,414.50. This trade represents a 48.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Jason Child sold 31,920 shares of ARM stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the transaction, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This trade represents a 15.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 216,049 shares of company stock worth $52,101,605.

Hedge Funds Weigh In On ARM

A number of institutional investors and hedge funds have recently made changes to their positions in ARM. Northwestern Mutual Wealth Management Co. raised its stake in ARM by 2,623.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after buying an additional 1,610,403 shares during the last quarter. Employees Provident Fund Board purchased a new stake in shares of ARM in the fourth quarter worth $120,241,000. Arrowstreet Capital Limited Partnership grew its stake in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after acquiring an additional 872,644 shares during the last quarter. Janus Henderson Group PLC bought a new position in shares of ARM during the first quarter valued at $116,112,000. Finally, SG Americas Securities LLC increased its holdings in shares of ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after acquiring an additional 705,459 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Trading Down 8.1%

ARM stock opened at $224.89 on Thursday. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The firm has a 50-day moving average of $331.09 and a 200-day moving average of $211.79. The firm has a market cap of $240.20 billion, a P/E ratio of 267.73, a P/E/G ratio of 7.61 and a beta of 3.76.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. ARM had a return on equity of 12.43% and a net margin of 18.37%.The firm’s revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.35 earnings per share. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. Research analysts forecast that ARM will post 1.12 earnings per share for the current fiscal year.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported record first-quarter revenue of $1.29 billion, up 22% year over year, while earnings per share reached $0.45 versus the $0.40 analyst consensus. Both results exceeded expectations. Arm Holdings beats Q1 estimates, shares fall in after-hours
• Positive Sentiment: The company forecast second-quarter EPS of $0.43 to $0.51, above the $0.39 consensus estimate, and projected quarterly revenue above Wall Street expectations. The outlook reflects continued demand for Arm-based designs in AI data centers. Arm forecasts quarterly revenue above estimates on AI-driven chip demand
• Positive Sentiment: Demand from hyperscale cloud companies, including Alphabet and Amazon, is supporting Arm’s licensing revenue and royalty growth as increasingly complex AI and data-center chips are shipped. Arm shares dive after hours despite forecasts above estimates
• Neutral Sentiment: Management published its fiscal 2027 first-quarter shareholder letter, providing the formal results and outlook for investors. Arm Holdings plc Reports Results for the First Quarter
• Negative Sentiment: Despite the earnings and guidance beats, shares fell nearly 7% in after-hours trading because investors viewed the sales outlook as insufficiently impressive relative to the market’s very high expectations for AI growth. Analysts also noted that Arm’s premium valuation leaves little room for an merely solid quarter. Qualcomm and Arm Forecasts Fail to Impress Investors

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.