ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) Given Consensus Rating of “Moderate Buy” by Analysts

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) have been given a consensus rating of “Moderate Buy” by the twenty-six research firms that are currently covering the stock, Marketbeat reports. One analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and seventeen have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $297.6522.

A number of equities analysts have recently issued reports on ARM shares. Needham & Company LLC restated a “buy” rating and issued a $400.00 price target on shares of ARM in a research note on Tuesday, June 16th. New Street Research cut ARM from a “buy” rating to a “neutral” rating in a research report on Thursday, June 18th. Bank of America increased their target price on ARM from $335.00 to $460.00 and gave the company a “neutral” rating in a report on Tuesday, June 23rd. TD Cowen raised their target price on ARM from $265.00 to $475.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research report on Thursday, May 7th.

Insider Transactions at ARM

In other ARM news, insider Spencer Collins sold 51,961 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares of the company’s stock, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares in the company, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 216,049 shares of company stock worth $52,101,605.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently modified their holdings of ARM. Northwestern Mutual Wealth Management Co. raised its position in shares of ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after purchasing an additional 1,610,403 shares during the period. Employees Provident Fund Board bought a new position in ARM in the 4th quarter worth $120,241,000. Arrowstreet Capital Limited Partnership increased its stake in ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares in the last quarter. Janus Henderson Group PLC purchased a new stake in ARM in the 1st quarter worth $116,112,000. Finally, SG Americas Securities LLC raised its holdings in ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after acquiring an additional 705,459 shares during the period. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Trading Down 8.1%

ARM stock opened at $224.89 on Thursday. ARM has a 12 month low of $100.02 and a 12 month high of $452.70. The stock has a fifty day simple moving average of $331.09 and a two-hundred day simple moving average of $211.79. The firm has a market cap of $240.20 billion, a price-to-earnings ratio of 267.73, a PEG ratio of 7.61 and a beta of 3.76.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a net margin of 18.37% and a return on equity of 12.43%. The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the previous year, the company earned $0.35 earnings per share. The firm’s quarterly revenue 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, equities research analysts forecast that ARM will post 1.12 EPS for the current fiscal year.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported record first-quarter revenue of $1.29 billion, up 22% year over year, while earnings per share reached $0.45 versus the $0.40 analyst consensus. Both results exceeded expectations. Arm Holdings beats Q1 estimates, shares fall in after-hours
• Positive Sentiment: The company forecast second-quarter EPS of $0.43 to $0.51, above the $0.39 consensus estimate, and projected quarterly revenue above Wall Street expectations. The outlook reflects continued demand for Arm-based designs in AI data centers. Arm forecasts quarterly revenue above estimates on AI-driven chip demand
• Positive Sentiment: Demand from hyperscale cloud companies, including Alphabet and Amazon, is supporting Arm’s licensing revenue and royalty growth as increasingly complex AI and data-center chips are shipped. Arm shares dive after hours despite forecasts above estimates
• Neutral Sentiment: Management published its fiscal 2027 first-quarter shareholder letter, providing the formal results and outlook for investors. Arm Holdings plc Reports Results for the First Quarter
• Negative Sentiment: Despite the earnings and guidance beats, shares fell nearly 7% in after-hours trading because investors viewed the sales outlook as insufficiently impressive relative to the market’s very high expectations for AI growth. Analysts also noted that Arm’s premium valuation leaves little room for an merely solid quarter. Qualcomm and Arm Forecasts Fail to Impress Investors

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.