ARM (NASDAQ:ARM) Stock Gets Price Target Trim from UBS Group

ARM (NASDAQ:ARM) had its price objective cut by UBS Group from $320.00 to $270.00 in a report released on Thursday,Benzinga reports. They currently have a buy rating on the stock.

ARM has been the subject of several other research reports. Morgan Stanley upped their price objective on ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Royal Bank Of Canada dropped their price objective on shares of ARM from $340.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday. Barclays cut their target price on shares of ARM from $360.00 to $325.00 and set an “overweight” rating on the stock in a research report on Thursday. Jefferies Financial Group reissued a “buy” rating and set a $320.00 target price on shares of ARM in a report on Monday, July 20th. Finally, Guggenheim reissued a “buy” rating and set a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Nineteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and a consensus price target of $291.72.

ARM Stock Up 4.7%

Shares of ARM opened at $174.62 on Thursday. ARM has a 12-month low of $100.02 and a 12-month high of $452.70. The business has a 50-day simple moving average of $252.78 and a two-hundred day simple moving average of $229.93. The stock has a market cap of $186.51 billion, a PE ratio of 200.71, a PEG ratio of 5.10 and a beta of 3.93.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.48 by $0.04. ARM had a return on equity of 11.57% and a net margin of 17.13%. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same period last year, the company earned $0.39 earnings per share. The business’s quarterly revenue was up 27.1% on a year-over-year basis. On average, equities research analysts expect that ARM will post 1.17 EPS for the current year.

Insider Transactions at ARM

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

Institutional Investors Weigh In On ARM

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership increased its stake in ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares in the last quarter. Janus Henderson Group PLC acquired a new position in ARM during the first quarter worth $116,112,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of ARM in the third quarter valued at $179,998,000. Altshuler Shaham Ltd lifted its stake in shares of ARM by 202.6% in the first quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company’s stock valued at $72,356,000 after buying an additional 320,236 shares in the last quarter. Finally, Liontrust Investment Partners LLP lifted its stake in shares of ARM by 139.7% in the first quarter. Liontrust Investment Partners LLP now owns 347,339 shares of the company’s stock valued at $52,545,000 after buying an additional 202,410 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, ahead of estimates. Licensing revenue rose 50%, and data-center royalties doubled, highlighting demand for Arm technology in AI infrastructure. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s push into its own AGI CPU could broaden its opportunity beyond chip-design royalties; management sees potential for up to $2 billion in revenue in fiscal 2027–28. Oracle has also said it plans to offer Arm AGI CPU instances in 2027. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: UBS and JPMorgan retained Buy/Overweight ratings despite cutting their price targets, indicating continued analyst confidence in potential upside. UBS analyst recommendations JPMorgan price target
• Neutral Sentiment: AI and data-center stocks faced market-wide pressure after midterm-election results raised concerns about a possible slowdown in data-center investment. Major indexes recovered some losses Friday, offering a more supportive backdrop, though uncertainty remains. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: Investors focused on weaker smartphone-related royalties and concerns that handset demand may soften, offsetting Arm’s strong data-center growth. Royalty revenue is recurring, so slower growth here may temper expectations for future earnings. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns amplified the post-earnings selloff: investors questioned whether Arm’s high expectations are justified even after the quarterly revenue beat. UBS cut its target from $320 to $270, and JPMorgan lowered its target from $255 to $245. Arm stock slides as results stoke valuation doubts

About ARM

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.