ARM (NASDAQ:ARM) Upgraded at New Street Research

ARM (NASDAQ:ARM) was upgraded by stock analysts at New Street Research from a “neutral” rating to a “buy” rating in a note issued to investors on Thursday, Marketbeat.com reports.

ARM has been the subject of several other research reports. Loop Capital upped their price target on shares of ARM from $155.00 to $180.00 and gave the company a “buy” rating in a research report on Wednesday, November 12th. KeyCorp set a $170.00 target price on shares of ARM in a report on Thursday. Wells Fargo & Company decreased their price target on shares of ARM from $160.00 to $150.00 and set an “overweight” rating on the stock in a research report on Thursday. Evercore ISI cut their price objective on shares of ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Mizuho cut their price target on ARM from $190.00 to $160.00 and set an “outperform” rating for the company in a report on Thursday. Seventeen investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, ARM currently has an average rating of “Moderate Buy” and a consensus target price of $163.67.

ARM Stock Up 4.2%

Shares of ARM stock traded up $4.39 during trading on Thursday, hitting $109.29. 9,956,863 shares of the stock traded hands, compared to its average volume of 6,859,223. The stock has a market cap of $115.46 billion, a price-to-earnings ratio of 139.09, a PEG ratio of 6.26 and a beta of 4.35. ARM has a 52 week low of $80.00 and a 52 week high of $183.16. The firm’s fifty day moving average is $117.81 and its 200-day moving average is $138.52.

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, beating the consensus estimate of $0.33 by $0.06. The business had revenue of $1.14 billion during 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 company’s revenue was up 34.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.30 earnings per share. On average, analysts forecast that ARM will post 0.9 earnings per share for the current fiscal year.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Sustainable Growth Advisers LP increased its stake in ARM by 116.8% in the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock valued at $559,171,000 after buying an additional 1,862,626 shares during the period. Capital Research Global Investors acquired a new stake in ARM in the third quarter valued at $243,098,000. Hyperion Asset Management Ltd purchased a new stake in shares of ARM during the 3rd quarter worth $202,980,000. Schroder Investment Management Group grew its stake in shares of ARM by 41.7% during the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after purchasing an additional 1,396,684 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of ARM by 139.9% in the 2nd quarter. Invesco Ltd. now owns 1,381,906 shares of the company’s stock valued at $223,509,000 after purchasing an additional 805,886 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat revenue expectations and broadly met EPS — Revenue came in around $1.24B (≈25.7% YoY) and reported EPS was roughly in line/slightly above consensus, supporting growth driven by AI workloads. ARM Q3 earnings report
• Positive Sentiment: Q4 guidance was raised above Street expectations — Arm gave revenue and EPS guidance that topped consensus, citing strong AI-related demand for its energy‑efficient architectures. That supports a positive medium-term demand thesis in data‑center AI. Arm forecasts Q4 revenue above estimates
• Positive Sentiment: AI demand hit a record for total revenue this quarter — company commentary and coverage note AI workloads remain a key growth driver even as other end markets soften. CNBC: ARM licensing miss but AI demand lifts revenue
• Neutral Sentiment: Analyst actions are mixed — Mizuho cut its price target to $160 but kept an “outperform” rating; Rosenblatt trimmed its target to $175 while remaining “buy”; Benchmark reaffirmed a “hold.” Ratings still imply significant upside vs. the current price, but targets were reduced. Analyst updates on ARM Benchmark reaffirmation
• Neutral Sentiment: Company event scheduled — Arm announced an “Arm Everywhere” event on March 24 to highlight its AI roadmap, which could offer additional product or partnership catalysts. Arm to Host ‘Arm Everywhere’ Event
• Negative Sentiment: Licensing revenue narrowly missed estimates and that shortfall hit the stock after hours — investors focused on the licensing miss despite overall revenue strength. CNBC: ARM licensing revenue miss
• Negative Sentiment: Memory shortage and smartphone production cuts are creating near‑term demand risk for Arm’s mobile IP — coverage notes Qualcomm and Arm are both pressured as OEMs scale back phone builds, a constraint that could weigh on licensing and royalty cycles. Reuters: Memory shortage hits Qualcomm and Arm Barron’s: Qualcomm and Arm Stocks Drop
• Negative Sentiment: Market reaction was muted-to-negative despite guidance — some commentary described the quarter as a stumble because licensing and profitability dynamics fell short of the most bullish forecasts. Seeking Alpha: Arm stumbles after guidance

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.