Royal Bank Of Canada Lowers ARM (NASDAQ:ARM) Price Target to $340.00

ARM (NASDAQ:ARM) had its target price dropped by Royal Bank Of Canada from $475.00 to $340.00 in a report released on Thursday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Royal Bank Of Canada’s target price would suggest a potential upside of 42.63% from the company’s previous close.

Several other equities research analysts have also recently weighed in on ARM. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of ARM in a research report on Thursday, May 7th. UBS Group reaffirmed a “buy” rating on shares of ARM in a report on Thursday. TD Cowen reduced their price target on shares of ARM from $475.00 to $350.00 and set a “buy” rating for the company in a research report on Thursday. Needham & Company LLC reiterated a “buy” rating and issued a $255.00 price objective on shares of ARM in a research report on Thursday. Finally, The Goldman Sachs Group boosted their target price on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $285.25.

ARM Stock Performance

ARM stock traded up $13.48 during mid-day trading on Thursday, reaching $238.38. The company’s stock had a trading volume of 8,886,305 shares, compared to its average volume of 8,578,546. The company has a market capitalization of $254.60 billion, a P/E ratio of 283.85, a PEG ratio of 7.61 and a beta of 3.76. The firm’s fifty day moving average price is $331.09 and its two-hundred day moving average price is $211.79. ARM has a 12-month low of $100.02 and a 12-month high of $452.70.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.43% and a net margin of 18.37%.The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period last year, the company earned $0.35 earnings per share. The business’s revenue for the quarter was up 22.4% on a year-over-year basis. On average, research analysts predict that ARM will post 1.12 EPS for the current fiscal year.

Insider Activity

In other ARM news, insider William Abbey sold 10,887 shares of ARM stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $224.14, for a total transaction of $2,440,212.18. Following the transaction, the insider directly owned 43,353 shares of the company’s stock, valued at approximately $9,717,141.42. This trade represents a 20.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction 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 of the company’s stock, valued at $39,470,517.28. This trade represents a 15.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 216,049 shares of company stock worth $52,101,605.

Institutional Investors Weigh In On ARM

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Morgan Stanley grew its position 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 acquiring an additional 45,314 shares during the last quarter. Invesco Ltd. grew 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 worth $265,279,000 after purchasing an additional 654,727 shares during the last quarter. Coatue Management LLC increased its stake 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 worth $251,413,000 after buying an additional 40,174 shares during the period. Wellington Management Group LLP increased its stake in shares of ARM by 41.6% in 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 raised its holdings in ARM by 11.0% during the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after buying an additional 187,035 shares during the last quarter. Institutional investors own 7.53% of the company’s stock.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported record fiscal Q1 revenue of $1.29 billion, up 22.4% year over year and ahead of consensus estimates near $1.26 billion. Adjusted EPS of $0.45 also exceeded the $0.40 estimate. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Management issued second-quarter EPS guidance of $0.43–$0.51, above the $0.39 analyst consensus, and forecast revenue above Wall Street expectations. This signals continued momentum despite supply constraints. Arm forecasts quarterly revenue above estimates on AI-driven chip demand
• Positive Sentiment: AI infrastructure remains the key growth driver. Data-center royalty revenue reportedly doubled, while demand for Arm’s AI and AGI CPU roadmap is accelerating as cloud providers develop custom chips. ARM Q1 Earnings Call Highlights AI CPU Demand and Data Center Growth
• Positive Sentiment: Needham reaffirmed its Buy rating and assigned a $255 price target, indicating further potential upside based on the AI-driven growth outlook.
• Neutral Sentiment: The stock’s valuation remains demanding, with a reported P/E ratio above 280 and a high beta, leaving shares sensitive to any guidance or execution disappointment.
• Negative Sentiment: Investors remain concerned that second-quarter royalty growth is expected to be about 13%, reflecting weakness in smartphones and the impact of lower memory prices. These issues could temper the conversion of AI demand into near-term royalty revenue. Memory Prices Hit Arm’s Royalties as Stock Falls 4%

About ARM

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.