Morgan Stanley Cuts ARM (NASDAQ:ARM) Price Target to $135.00

ARM (NASDAQ:ARM) had its price objective lowered by analysts at Morgan Stanley from $180.00 to $135.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Morgan Stanley’s price target points to a potential upside of 15.88% from the stock’s current price.

A number of other equities research analysts have also recently weighed in on ARM. UBS Group cut their price objective on shares of ARM from $200.00 to $195.00 and set a “buy” rating on the stock in a report on Thursday, November 6th. Susquehanna raised ARM from a “neutral” rating to a “positive” rating and set a $150.00 price target on the stock in a research report on Wednesday. Wells Fargo & Company raised their price objective on ARM from $190.00 to $195.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Loop Capital lifted their price objective on ARM from $155.00 to $180.00 and gave the company a “buy” rating in a research note on Wednesday, November 12th. Finally, Royal Bank Of Canada began coverage on shares of ARM in a report on Wednesday, January 14th. They issued an “outperform” rating and a $140.00 target price for the company. Sixteen research 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. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $172.14.

ARM Price Performance

ARM stock traded down $2.70 during midday trading on Friday, hitting $116.50. The stock had a trading volume of 4,369,352 shares, compared to its average volume of 6,804,865. The business has a 50-day moving average of $122.41 and a two-hundred day moving average of $141.11. The firm has a market cap of $123.08 billion, a price-to-earnings ratio of 149.36, a price-to-earnings-growth ratio of 6.82 and a beta of 4.34. ARM has a 52-week low of $80.00 and a 52-week high of $183.16.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.33 by $0.06. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.The company’s revenue for the quarter was up 34.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.30 earnings per share. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. Research analysts predict that ARM will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of ARM. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of ARM by 3.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 36,859 shares of the company’s stock valued at $4,029,000 after buying an additional 1,390 shares in the last quarter. Franklin Street Advisors Inc. NC raised its stake in ARM by 17.4% during the 4th quarter. Franklin Street Advisors Inc. NC now owns 125,062 shares of the company’s stock worth $13,671,000 after acquiring an additional 18,522 shares during the period. Rheos Capital Works Inc. lifted its holdings in ARM by 20.1% during the fourth quarter. Rheos Capital Works Inc. now owns 179,600 shares of the company’s stock valued at $19,632,000 after purchasing an additional 30,000 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its position in shares of ARM by 54.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 90,145 shares of the company’s stock worth $9,854,000 after purchasing an additional 31,610 shares during the period. Finally, Rathbones Group PLC boosted its position in shares of ARM by 4,638.8% in the fourth quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after purchasing an additional 489,491 shares during the period. 7.53% of the stock is currently owned by hedge funds and other institutional 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.