ARM (NASDAQ:ARM) Upgraded to Buy at New Street Research

ARM (NASDAQ:ARM) was upgraded by investment analysts at New Street Research from a “neutral” rating to a “buy” rating in a report released on Thursday, Marketbeat.com reports.

Other analysts have also issued reports about the stock. Oddo Bhf set a $170.00 price target on shares of ARM in a research report on Monday, January 5th. UBS Group dropped their price target on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday. Barclays boosted their price target on ARM from $115.00 to $165.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. Morgan Stanley decreased their price objective on ARM from $180.00 to $135.00 and set an “overweight” rating on the stock in a research note on Friday, January 23rd. Finally, Susquehanna upgraded ARM from a “neutral” rating to a “positive” rating and set a $150.00 price objective for the company in a research report on Wednesday, January 21st. Seventeen research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $163.67.

ARM Price Performance

ARM stock traded up $4.39 during trading hours on Thursday, hitting $109.29. The stock had a trading volume of 9,956,863 shares, compared to its average volume of 6,859,223. ARM has a 1-year low of $80.00 and a 1-year high of $183.16. The stock has a market capitalization of $115.46 billion, a price-to-earnings ratio of 139.09, a PEG ratio of 6.26 and a beta of 4.35. The stock’s fifty day moving average is $117.81 and its two-hundred day moving average is $138.52.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.06. The firm had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.06 billion. ARM had a net margin of 18.81% and a return on equity of 15.03%. The firm’s revenue was up 34.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.30 EPS. As a group, sell-side analysts anticipate that ARM will post 0.9 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ARM. E Fund Management Hong Kong Co. Ltd. grew its stake in shares of ARM by 2,760.9% during the 4th quarter. E Fund Management Hong Kong Co. Ltd. now owns 3,147 shares of the company’s stock valued at $337,000 after buying an additional 3,037 shares during the period. Navalign LLC acquired a new position in ARM during the fourth quarter valued at approximately $33,000. Meridian Wealth Management LLC grew its stake in ARM by 30.0% during the fourth quarter. Meridian Wealth Management LLC now owns 3,342 shares of the company’s stock worth $365,000 after buying an additional 772 shares during the period. HighPoint Advisor Group LLC raised its stake in shares of ARM by 31.7% in the 4th quarter. HighPoint Advisor Group LLC now owns 5,795 shares of the company’s stock valued at $633,000 after acquiring an additional 1,395 shares during the period. Finally, Crossmark Global Holdings Inc. boosted its position in ARM by 2.2% during the 4th quarter. Crossmark Global Holdings Inc. now owns 5,673 shares of the company’s stock worth $620,000 after purchasing an additional 122 shares during the period. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat revenue expectations and broadly met EPS — Revenue came in around $1.24B (≈25.7% YoY) and reported EPS was roughly in line/slightly above consensus, supporting growth driven by AI workloads. ARM Q3 earnings report
• Positive Sentiment: Q4 guidance was raised above Street expectations — Arm gave revenue and EPS guidance that topped consensus, citing strong AI-related demand for its energy‑efficient architectures. That supports a positive medium-term demand thesis in data‑center AI. Arm forecasts Q4 revenue above estimates
• Positive Sentiment: AI demand hit a record for total revenue this quarter — company commentary and coverage note AI workloads remain a key growth driver even as other end markets soften. CNBC: ARM licensing miss but AI demand lifts revenue
• Neutral Sentiment: Analyst actions are mixed — Mizuho cut its price target to $160 but kept an “outperform” rating; Rosenblatt trimmed its target to $175 while remaining “buy”; Benchmark reaffirmed a “hold.” Ratings still imply significant upside vs. the current price, but targets were reduced. Analyst updates on ARM Benchmark reaffirmation
• Neutral Sentiment: Company event scheduled — Arm announced an “Arm Everywhere” event on March 24 to highlight its AI roadmap, which could offer additional product or partnership catalysts. Arm to Host ‘Arm Everywhere’ Event
• Negative Sentiment: Licensing revenue narrowly missed estimates and that shortfall hit the stock after hours — investors focused on the licensing miss despite overall revenue strength. CNBC: ARM licensing revenue miss
• Negative Sentiment: Memory shortage and smartphone production cuts are creating near‑term demand risk for Arm’s mobile IP — coverage notes Qualcomm and Arm are both pressured as OEMs scale back phone builds, a constraint that could weigh on licensing and royalty cycles. Reuters: Memory shortage hits Qualcomm and Arm Barron’s: Qualcomm and Arm Stocks Drop
• Negative Sentiment: Market reaction was muted-to-negative despite guidance — some commentary described the quarter as a stumble because licensing and profitability dynamics fell short of the most bullish forecasts. Seeking Alpha: Arm stumbles after guidance

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.