ARM (NASDAQ:ARM) Stock Price Target Cut by UBS Group

ARM (NASDAQ:ARM) had its price objective decreased by equities researchers at UBS Group from $320.00 to $270.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. UBS Group‘s target price points to a potential upside of 54.62% from the stock’s previous close.

Several other research analysts have also weighed in on ARM. Royal Bank Of Canada dropped their target price on ARM from $340.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday. Barclays reduced their price target on ARM from $360.00 to $325.00 and set an “overweight” rating for the company in a report on Thursday. New Street Research raised ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target for the company in a research note on Thursday, July 30th. Jefferies Financial Group restated a “buy” rating and issued a $320.00 price objective on shares of ARM in a report on Monday, July 20th. Finally, KeyCorp raised their price objective on shares of ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Nineteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $291.72.

ARM Stock Up 4.7%

Shares of NASDAQ:ARM traded up $7.90 during trading on Thursday, reaching $174.62. 6,498,900 shares of the company traded hands, compared to its average volume of 5,021,303. The firm has a fifty day simple moving average of $252.78 and a 200 day simple moving average of $229.93. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The firm has a market cap of $186.51 billion, a P/E ratio of 200.71, a price-to-earnings-growth ratio of 5.84 and a beta of 3.93.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same period in the prior year, the business posted $0.39 earnings per share. ARM’s revenue for the quarter was up 27.1% compared to the same quarter last year. As a group, research analysts anticipate that ARM will post 1.17 EPS for the current year.

Insider Transactions at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Monday, September 21st. The shares were 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 $46,032,600. This trade represents a 6.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Moors & Cabot Inc. increased its position in ARM by 13.0% in the 3rd quarter. Moors & Cabot Inc. now owns 2,667 shares of the company’s stock worth $773,000 after buying an additional 306 shares during the period. ICICI Prudential Asset Management Co Ltd grew its stake in shares of ARM by 1.5% in the third quarter. ICICI Prudential Asset Management Co Ltd now owns 7,117 shares of the company’s stock worth $2,062,000 after acquiring an additional 106 shares during the last quarter. Allworth Financial LP grew its stake in shares of ARM by 12.3% in the third quarter. Allworth Financial LP now owns 2,548 shares of the company’s stock worth $738,000 after acquiring an additional 279 shares during the last quarter. Fisher Asset Management LLC increased its position in ARM by 18.4% during the third quarter. Fisher Asset Management LLC now owns 1,120 shares of the company’s stock worth $325,000 after acquiring an additional 174 shares during the period. Finally, Russell Investments Group Ltd. increased its position in ARM by 77.0% during the third quarter. Russell Investments Group Ltd. now owns 13,912 shares of the company’s stock worth $4,030,000 after acquiring an additional 6,053 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM News Roundup

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.