ARM (NASDAQ:ARM) Upgraded at Needham & Company LLC

Needham & Company LLC upgraded shares of ARM (NASDAQ:ARM) from a hold rating to a buy rating in a research report sent to investors on Thursday, Marketbeat.com reports. Needham & Company LLC currently has $200.00 price objective on the stock.

Several other research analysts have also recently commented on ARM. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Wednesday, January 21st. KeyCorp reissued an “overweight” rating on shares of ARM in a report on Thursday, February 5th. Jefferies Financial Group set a $170.00 price objective on shares of ARM in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of ARM from $125.00 to $140.00 and gave the stock a “hold” rating in a report on Wednesday. Finally, Benchmark reissued a “hold” rating on shares of ARM in a research note on Thursday, February 5th. Nineteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus target price of $168.17.

ARM Stock Down 6.9%

ARM stock opened at $144.13 on Thursday. ARM has a twelve month low of $80.00 and a twelve month high of $183.16. The company has a market cap of $152.27 billion, a PE ratio of 192.17, a price-to-earnings-growth ratio of 9.10 and a beta of 4.11. The business’s 50-day simple moving average is $122.48 and its 200 day simple moving average is $134.30.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter in the prior year, the firm posted $0.39 EPS. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. On average, equities research analysts anticipate that ARM will post 0.9 EPS for the current year.

Insider Buying and Selling at ARM

In other ARM news, CFO Jason Child sold 21,280 shares of the stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the transaction, the chief financial officer directly owned 174,706 shares in the company, valued at $25,921,129.22. This represents a 10.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 53,133 shares of company stock valued at $8,288,586 over the last quarter.

Hedge Funds Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in ARM. Capital Research Global Investors bought a new stake in ARM during the third quarter worth about $243,098,000. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of ARM by 2,623.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd bought a new stake in ARM during the 3rd quarter worth approximately $202,980,000. Schroder Investment Management Group grew its position in ARM by 41.7% during the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after acquiring an additional 1,396,684 shares during the last quarter. Finally, Employees Provident Fund Board acquired a new stake in ARM during the 4th quarter valued at $120,241,000. 7.53% of the stock is owned by institutional investors.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled an in-house AGI/data‑center CPU and said it could add roughly $15 billion in annual revenue within a few years, plus Meta is positioned as an early customer — a major new revenue pathway beyond licensing. Arm Holdings Stock Soars As Company Targets $15 Billion In Annual Sales From New In-House Chip
• Positive Sentiment: A cluster of analyst upgrades and price‑target raises (Needham, Wells Fargo, Deutsche Bank, Rosenblatt, Barclays and others) has lifted sentiment and institutional interest, supporting higher forward expectations. Arm’s stock nabs another upgrade. It’s never been this loved by analysts.
• Positive Sentiment: Unusually large call‑option volume signals speculative bullish positioning from traders, which can amplify near‑term upside on positive headlines. Stock Traders Purchase Large Volume of Call Options on ARM (NASDAQ:ARM)
• Neutral Sentiment: Trading volume jumped on the analyst news/upgrade flow, suggesting active repositioning by funds and retail investors — volume confirms conviction but can also precede profit‑taking. ARM (NASDAQ:ARM) Sees Strong Trading Volume on Analyst Upgrade
• Neutral Sentiment: Technical metrics improved (Relative Strength rating jumped), which reflects momentum but also increases the chance of short‑term mean reversion. Arm Holdings Stock Sees Relative Strength Rating Jump To 87
• Negative Sentiment: Mainstream press and analysts warn the pivot from IP licensor to chip seller must go nearly perfectly — execution, customer wins beyond Meta and competitive intensity are material risks that could damp long‑term upside. Arm’s Timing Is Good, but Big Chip Move Now Has to Go Perfectly
• Negative Sentiment: Sentiment/technicals show the stock entered overbought territory and the shares now carry a rich valuation, so profit‑taking and a pullback were predictable after the sharp run. Arm Stock Just Entered Overbought Territory. Is It Too Late to Chase the Rally Here?

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.