UBS Group Has Lowered Expectations for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price objective reduced by equities researchers at UBS Group from $195.00 to $175.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. UBS Group’s target price suggests a potential upside of 52.52% from the stock’s current price.

A number of other analysts have also recently issued reports on ARM. Mizuho increased their price objective on ARM from $180.00 to $190.00 and gave the stock an “outperform” rating in a report on Thursday, November 6th. KeyCorp increased their price target on shares of ARM from $190.00 to $200.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. Rosenblatt Securities restated a “buy” rating and issued a $180.00 price objective on shares of ARM in a research report on Thursday, November 6th. Morgan Stanley decreased their target price on shares of ARM from $180.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Susquehanna raised shares of ARM from a “neutral” rating to a “positive” rating and set a $150.00 price target for the company in a report on Wednesday, January 21st. Sixteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $169.52.

ARM Trading Down 1.1%

Shares of NASDAQ ARM traded down $1.33 during midday trading on Monday, hitting $114.74. The company’s stock had a trading volume of 2,257,025 shares, compared to its average volume of 6,684,079. The firm has a market capitalization of $121.22 billion, a price-to-earnings ratio of 146.98, a P/E/G ratio of 6.95 and a beta of 4.34. The stock has a fifty day moving average price of $121.93 and a 200 day moving average price of $140.80. ARM has a one year low of $80.00 and a one year high of $183.16.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates 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 net margin of 18.81% and a return on equity of 15.03%. ARM’s revenue was up 34.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. On average, equities research analysts predict that ARM will post 0.9 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ARM

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

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.