ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) have received an average rating of “Moderate Buy” from the twenty-eight brokerages that are presently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $175.0455.

Several research analysts have recently commented on ARM shares. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and decreased their price objective for the stock from $160.00 to $120.00 in a research note on Monday, December 15th. Loop Capital increased their target price on shares of ARM from $155.00 to $180.00 and gave the stock a “buy” rating in a report on Wednesday, November 12th. Oddo Bhf set a $170.00 price target on shares of ARM in a report on Monday, January 5th. Raymond James Financial assumed coverage on shares of ARM in a research report on Friday, November 21st. They issued a “hold” rating for the company. Finally, UBS Group decreased their price objective on shares of ARM from $200.00 to $195.00 and set a “buy” rating on the stock in a research report on Thursday, November 6th.

ARM Price Performance

Shares of ARM stock opened at $105.11 on Friday. ARM has a 1-year low of $80.00 and a 1-year high of $183.16. The company’s fifty day simple moving average is $126.29 and its 200-day simple moving average is $142.71. The stock has a market capitalization of $111.05 billion, a PE ratio of 134.76, a P/E/G ratio of 6.29 and a beta of 4.34.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.33 by $0.06. The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.ARM’s revenue was up 34.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. As a group, research analysts anticipate that ARM will post 0.9 EPS for the current year.

Hedge Funds Weigh In On ARM

Several large investors have recently made changes to their positions in the business. Sustainable Growth Advisers LP raised its stake in ARM by 116.8% during the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock valued at $559,171,000 after purchasing an additional 1,862,626 shares during the period. Capital Research Global Investors bought a new position in ARM in the 3rd quarter worth approximately $243,098,000. Hyperion Asset Management Ltd purchased a new stake in ARM during the 3rd quarter valued at approximately $202,980,000. Schroder Investment Management Group raised its position in shares of ARM by 41.7% during the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock valued at $767,611,000 after buying an additional 1,396,684 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of ARM by 139.9% in the second quarter. Invesco Ltd. now owns 1,381,906 shares of the company’s stock worth $223,509,000 after buying an additional 805,886 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.