ARM’s (ARM) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of ARM (NASDAQ:ARM) in a research note issued to investors on Thursday morning,Benzinga reports. They currently have a $255.00 price objective on the stock.

A number of other brokerages also recently issued reports on ARM. UBS Group cut their target price on ARM from $470.00 to $360.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Sanford C. Bernstein set a $500.00 price objective on shares of ARM in a report on Wednesday, June 17th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research report on Friday, July 17th. New Street Research cut shares of ARM from a “buy” rating to a “neutral” rating in a research report on Thursday, June 18th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a research note on Thursday, May 7th. Eighteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $285.33.

ARM Stock Performance

NASDAQ:ARM opened at $239.69 on Thursday. ARM has a one year low of $100.02 and a one year high of $452.70. The stock has a market cap of $256.01 billion, a PE ratio of 247.11, a P/E/G ratio of 7.45 and a beta of 3.76. The stock has a 50 day moving average price of $328.64 and a 200 day moving average price of $212.90.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 earnings per share. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. As a group, analysts predict that ARM will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

In related news, insider William Abbey sold 10,887 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $224.14, for a total transaction of $2,440,212.18. Following the completion of the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. 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 quarter, insiders sold 216,049 shares of company stock worth $52,101,605.

Institutional Investors Weigh In On ARM

A number of institutional investors have recently made changes to their positions in the stock. Morgan Stanley lifted its holdings in shares of ARM by 1.2% in 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. increased its holdings in ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after purchasing an additional 654,727 shares during the last quarter. Coatue Management LLC raised its position in 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 purchasing an additional 40,174 shares during the period. Wellington Management Group LLP raised its position in ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after purchasing an additional 631,576 shares during the period. Finally, Schroder Investment Management Group boosted its position 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 period. 7.53% of the stock is currently owned by institutional investors and hedge funds.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal first-quarter revenue of $1.29 billion, up 22.4% year over year, and adjusted EPS of $0.45, beating analyst estimates. Management also issued second-quarter guidance above consensus, supported by rising AI and data-center demand. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Data-center royalty revenue reportedly doubled, while demand for Arm’s AI-focused CPU and upcoming AGI CPU platform is strengthening. One report said customer demand for the AGI CPU has topped $2 billion, reinforcing the long-term AI infrastructure opportunity. ARM Q1 Earnings Call Highlights AI CPU Demand and Data Center Growth
• Positive Sentiment: Citi reiterated its Buy rating and $300 price target, saying Arm remains well positioned for long-term AI infrastructure growth despite weaker handset conditions. Arm remains key AI infrastructure beneficiary despite softer handset outlook
• Neutral Sentiment: Rosenblatt lowered its target to $250 while maintaining Buy; TD Cowen cut its target to $350 and RBC reduced its target to $340, although both retained positive ratings. Morgan Stanley raised its target to $212 but kept an Equal Weight rating.
• Negative Sentiment: Investors remain concerned that second-quarter royalty growth of roughly 13% will be restrained by smartphone weakness and memory-price pressures. These near-term concerns overshadowed the earnings beat for some shareholders. Memory Prices Hit Arm’s Royalties as Stock Falls
• Negative Sentiment: Valuation remains a major risk: ARM has gained 110.5% year to date and trades at a very high earnings multiple. Analysts warn that continued gains require exceptional execution across AI servers, cloud, edge, and automotive markets, leaving the stock vulnerable if growth slows or the AGI CPU rollout disappoints.

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.