ARM (NASDAQ:ARM) Shares Up 4.7% – Still a Buy?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded up 4.7% during mid-day trading on Friday. The company traded as high as $177.62 and last traded at $174.62. Approximately 6,453,377 shares were traded during mid-day trading, a decline of 14% from the average daily volume of 7,475,054 shares. The stock had previously closed at $166.72.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s fiscal Q2 results beat estimates: revenue rose 27% year over year to $1.44 billion and adjusted EPS was $0.52 versus a $0.48 consensus. Data-center royalties more than doubled, while management highlighted AI demand and the potential for its AGI CPU to generate up to $2 billion in revenue in fiscal 2027–28. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Analysts retained positive ratings despite lowering targets: UBS cut its target to $270 but kept a Buy rating, and JPMorgan lowered its target to $245 while maintaining Overweight. UBS price-target update
• Neutral Sentiment: AI-related market turbulence weighed on chip and data-center stocks after midterm-election results raised fears of slower data-center investment. Major indexes recovered part of Thursday’s decline on Friday, providing a broader-market tailwind. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: The earnings beat did not ease concerns over slower smartphone-related royalties and the gap between chip shipments and royalty revenue. Investors are also questioning ARM’s high valuation, leaving less room for disappointment; UBS’s and JPMorgan’s target cuts reflect a more cautious outlook even though both kept favorable ratings. Weak smartphone royalties offset AI data-center growth

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on ARM shares. UBS Group reduced their price objective on ARM from $320.00 to $270.00 and set a “buy” rating for the company in a research note on Thursday. Morgan Stanley lifted their price objective on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Susquehanna raised their price target on shares of ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research note on Tuesday, July 21st. Guggenheim restated a “buy” rating and issued a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Finally, TD Cowen decreased their price objective on ARM from $350.00 to $250.00 and set a “buy” rating on the stock in a report on Thursday. Nineteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $291.72.

ARM Trading Up 4.7%

The company has a market cap of $186.51 billion, a PE ratio of 200.71, a P/E/G ratio of 5.60 and a beta of 3.93. The company has a fifty day simple moving average of $254.39 and a two-hundred day simple moving average of $229.59.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. ARM had a return on equity of 11.86% and a net margin of 17.13%. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same period in the previous year, the company posted $0.39 earnings per share. The business’s revenue for the quarter was up 27.1% on a year-over-year basis. On average, research analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.17 EPS for the current fiscal year.

Insider Transactions at ARM

In other ARM news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the completion of the transaction, the chief financial officer owned 153,442 shares in the company, valued at $46,032,600. The trade was a 6.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

Several institutional investors have recently modified their holdings of ARM. Hyperion Asset Management Ltd increased its holdings in ARM by 36.9% in the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock valued at $210,662,000 after buying an additional 195,942 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in ARM in the third quarter valued at $179,998,000. Arrowstreet Capital Limited Partnership lifted its holdings in ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares during the last quarter. ProShare Advisors LLC boosted its position in shares of ARM by 2.2% during the 3rd quarter. ProShare Advisors LLC now owns 421,817 shares of the company’s stock worth $122,184,000 after acquiring an additional 9,242 shares in the last quarter. Finally, Janus Henderson Group PLC acquired a new position in shares of ARM during the 1st quarter worth about $116,112,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them.

Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.