ARM (NASDAQ:ARM) Stock Price Up 8% – Here’s What Happened

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shot up 8% on Wednesday . The stock traded as high as $117.28 and last traded at $115.6940. 4,322,030 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 5,645,658 shares. The stock had previously closed at $107.17.

Analyst Ratings Changes

ARM has been the topic of several analyst reports. KeyCorp lifted their price target on shares of ARM from $190.00 to $200.00 and gave the stock an “overweight” rating in a research note on Thursday, November 6th. Citigroup downgraded ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Morgan Stanley dropped 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. Loop Capital increased their price target on ARM from $155.00 to $180.00 and gave the company a “buy” rating in a report on Wednesday, November 12th. Finally, The Goldman Sachs Group lowered ARM from a “neutral” rating to a “sell” rating and lowered their price objective for the company from $160.00 to $120.00 in a research note on Monday, December 15th. Sixteen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $172.14.

ARM Trading Down 2.6%

The company has a 50-day moving average of $122.41 and a 200-day moving average of $141.11. The firm has a market capitalization of $122.63 billion, a price-to-earnings ratio of 148.81, a price-to-earnings-growth ratio of 6.82 and a beta of 4.34.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, November 5th. The company reported $0.39 earnings per share 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 firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the previous year, the firm earned $0.30 earnings per share. The firm’s revenue for the quarter was up 34.5% compared to the same quarter last year. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. On average, research analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC grew its stake in ARM by 126.0% during the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after buying an additional 97 shares during the last quarter. Huntington National Bank acquired a new position in shares of ARM during the second quarter valued at $30,000. Grey Fox Wealth Advisors LLC bought a new position in shares of ARM during the third quarter worth about $28,000. FWL Investment Management LLC acquired a new stake in shares of ARM in the 2nd quarter worth about $34,000. Finally, Strategic Investment Solutions Inc. IL increased its holdings in shares of ARM by 238.1% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock worth $40,000 after acquiring an additional 200 shares during the period. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.