ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Receives $297.65 Consensus Target Price from Analysts

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) have been assigned a consensus rating of “Moderate Buy” from the twenty-six ratings firms that are covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, seven have given a hold rating and eighteen have assigned a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $285.3333.

A number of analysts have recently weighed in on ARM shares. Rosenblatt Securities cut their price objective on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Bank of America reiterated a “neutral” rating on shares of ARM in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research note on Thursday, May 7th. Mizuho increased their price target on ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, June 8th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research note on Friday, July 17th.

ARM Stock Performance

Shares of ARM stock opened at $274.58 on Thursday. The stock has a market capitalization of $293.27 billion, a P/E ratio of 283.08, a price-to-earnings-growth ratio of 8.32 and a beta of 3.90. The company has a 50 day moving average price of $325.91 and a 200 day moving average price of $216.97. ARM has a fifty-two week low of $100.02 and a fifty-two week high of $452.70.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the prior year, the firm earned $0.35 EPS. The firm’s revenue for the quarter was up 22.4% on a year-over-year basis. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, research analysts forecast that ARM will post 1.15 EPS for the current fiscal year.

Insider Activity

In other ARM news, insider Charlotte Claire Eaton sold 7,805 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the completion of the transaction, the insider owned 5,000 shares in the company, valued at $1,450,050. The trade was a 60.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Jason Child sold 31,920 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the completion of the sale, the chief financial officer directly owned 174,232 shares in the company, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 216,049 shares of company stock valued at $52,101,605 over the last three months.

Hedge Funds Weigh In On ARM

Several large investors have recently bought and sold shares of the business. Morgan Stanley grew its stake in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after buying an additional 45,314 shares during the last quarter. Invesco Ltd. raised its holdings 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 buying an additional 654,727 shares during the last quarter. Coatue Management LLC raised its holdings in shares of ARM by 1.8% in the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after buying an additional 40,174 shares during the last quarter. Wellington Management Group LLP boosted its stake in shares of ARM by 41.6% during the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after buying an additional 631,576 shares during the period. Finally, Schroder Investment Management Group grew its holdings in shares of ARM by 11.0% during the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock worth $206,739,000 after buying an additional 187,035 shares during the last quarter. 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.