ARM (NASDAQ:ARM) Issues Q2 2027 Earnings Guidance

ARM (NASDAQ:ARM) updated its second quarter 2027 earnings guidance on Wednesday. The company provided EPS guidance of 0.430-0.510 for the period, compared to the consensus earnings per share estimate of 0.390. The company issued revenue guidance of $880.0M-$1.9 billion, compared to the consensus revenue estimate of $1.3 billion.

ARM Trading Down 8.1%

Shares of NASDAQ ARM traded down $19.85 during trading hours on Wednesday, hitting $224.89. 9,039,099 shares of the company traded hands, compared to its average volume of 8,574,409. The stock has a market capitalization of $240.20 billion, a price-to-earnings ratio of 267.73, a price-to-earnings-growth ratio of 8.28 and a beta of 3.76. The company’s 50 day moving average price is $331.72 and its 200 day moving average price is $211.00. ARM has a 12 month low of $100.02 and a 12 month high of $452.70.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.43% and a net margin of 18.37%.ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. Equities analysts anticipate that ARM will post 1.12 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Mizuho lifted their price target on shares of ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. UBS Group lowered their price objective on shares of ARM from $470.00 to $360.00 and set a “buy” rating for the company in a research note on Monday, July 20th. TD Cowen increased their target price on ARM from $265.00 to $475.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Royal Bank Of Canada lifted their price objective on shares of ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $400.00 price target on shares of ARM in a research note on Tuesday, June 16th. Seventeen investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $297.65.

Insider Activity at ARM

In other ARM news, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. The trade was a 81.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider William Abbey sold 10,887 shares of the stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $224.14, for a total transaction of $2,440,212.18. Following the sale, the insider directly owned 43,353 shares in the company, valued at $9,717,141.42. This trade represents a 20.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 216,049 shares of company stock valued at $52,101,605 in the last 90 days.

Hedge Funds Weigh In On ARM

Institutional investors have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. purchased a new position in shares of ARM during the 4th quarter worth $30,000. Invesco Ltd. raised its stake in shares of ARM by 36.9% in the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after acquiring an additional 654,727 shares in the last quarter. Vident Advisory LLC boosted its stake in shares of ARM by 16.0% in the 4th quarter. Vident Advisory LLC now owns 157,119 shares of the company’s stock valued at $17,175,000 after buying an additional 21,680 shares during the period. EP Wealth Advisors LLC acquired a new position in ARM during the 4th quarter worth approximately $253,000. Finally, Mackenzie Financial Corp purchased a new position in ARM in the fourth quarter valued at $2,081,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

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.