Bank of America Has Lowered Expectations for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price target dropped by research analysts at Bank of America from $205.00 to $145.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Bank of America‘s target price indicates a potential upside of 19.68% from the company’s current price.

ARM has been the subject of a number of other research reports. UBS Group reduced their target price on ARM from $200.00 to $195.00 and set a “buy” rating for the company in a report on Thursday, November 6th. Evercore ISI increased their price objective on ARM from $173.00 to $178.00 and gave the stock an “outperform” rating in a research note on Thursday, September 11th. JPMorgan Chase & Co. raised their price objective on ARM from $175.00 to $180.00 and gave the stock an “overweight” rating in a research report on Thursday, November 6th. Wells Fargo & Company lifted their target price on ARM from $190.00 to $195.00 and gave the company an “overweight” rating in a research note on Thursday, November 6th. Finally, The Goldman Sachs Group lowered shares of ARM from a “neutral” rating to a “sell” rating and reduced their price target for the stock from $160.00 to $120.00 in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $178.30.

ARM Trading Down 2.6%

ARM stock traded down $3.21 during trading hours on Tuesday, hitting $121.16. 3,033,540 shares of the stock traded hands, compared to its average volume of 5,119,794. The stock has a 50-day simple moving average of $151.71 and a 200 day simple moving average of $147.53. The company has a market cap of $128.00 billion, a P/E ratio of 154.64, a P/E/G ratio of 7.84 and a beta of 4.24. ARM has a one year low of $80.00 and a one year high of $183.16.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Sustainable Growth Advisers LP grew its holdings in ARM by 116.8% during the second 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 last quarter. Capital Research Global Investors acquired a new stake in shares of ARM in the third quarter worth $243,098,000. Hyperion Asset Management Ltd bought a new stake in shares of ARM during the 3rd quarter worth $202,980,000. Schroder Investment Management Group grew its stake in ARM by 41.7% in the 2nd 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. raised its holdings in ARM by 139.9% in the 2nd quarter. Invesco Ltd. now owns 1,381,906 shares of the company’s stock worth $223,509,000 after acquiring an additional 805,886 shares during the period. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.