Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) Stock Has Average Target Price of $303.32 According to Analysts

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) have received a consensus recommendation of “Moderate Buy” from the twenty-seven brokerages that are presently covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $303.32.

Several equities research analysts have recently commented on the company. TD Cowen decreased their price target on ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Susquehanna increased their price target on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research note on Friday, July 17th. Needham & Company LLC restated a “buy” rating and issued a $255.00 price objective on shares of ARM in a research report on Thursday, July 30th. Finally, Wells Fargo & Company cut their target price on shares of ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s annualized contract value increased 13% to $1.73 billion, suggesting solid demand for its chip architectures and potentially supporting expectations for fiscal second-quarter results. Can ARM’s 13% Contract Value Growth Sustain Momentum in Q2?
• Positive Sentiment: Microsoft is adding native Python support to Windows PCs powered by Arm processors. Better software compatibility could strengthen adoption of Arm-based computers and broaden the company’s ecosystem beyond smartphones. Microsoft Brings Native Python Support to Windows on Arm PCs
• Positive Sentiment: Recent investment comparisons continue to highlight Arm’s dominant position in mobile chips and expanding relevance in data centers and artificial intelligence, with its architecture used in more than 99% of smartphones. Arm vs. Credo Technology Group
• Neutral Sentiment: A court ruling in the Arm-Qualcomm licensing dispute awarded Qualcomm only $2 in damages. The limited financial impact reduces the immediate threat to Arm, but the broader licensing relationship and legal stakes remain unresolved. Arm-Qualcomm legal fight ends in limited verdict
• Negative Sentiment: Arm remains highly sensitive to interest rates because its valuation relies heavily on earnings expected years in the future. Its roughly 107-times forward earnings multiple also leaves limited room for disappointment compared with lower-priced semiconductor peers. Why Arm Holdings Stock Was Falling Today

ARM Price Performance

Shares of NASDAQ:ARM opened at $244.79 on Tuesday. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The stock has a market cap of $261.46 billion, a P/E ratio of 258.71, a P/E/G ratio of 7.06 and a beta of 3.78. The firm has a fifty day moving average price of $268.36 and a 200 day moving average price of $269.61.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. The firm had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. ARM’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period last year, the firm posted $0.35 EPS. Sell-side analysts expect that ARM will post 1.15 EPS for the current fiscal year.

Insider Activity

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of hedge funds have recently made changes to their positions in ARM. Hyperion Asset Management Ltd grew its position in shares of ARM by 28.0% during the fourth quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after buying an additional 401,594 shares in the last quarter. SG Americas Securities LLC grew its position in shares of ARM by 265.6% in the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after acquiring an additional 705,459 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after acquiring an additional 872,644 shares in the last quarter. Employees Provident Fund Board bought a new position in ARM during the fourth quarter worth $120,241,000. Finally, Janus Henderson Group PLC acquired a new stake in shares of ARM during the first quarter worth $116,112,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.