Benchmark Reaffirms Hold Rating for ARM (NASDAQ:ARM)

ARM (NASDAQ:ARM)‘s stock had its “hold” rating reaffirmed by equities research analysts at Benchmark in a research report issued to clients and investors on Thursday,Benzinga reports.

Other equities analysts also recently issued research reports about the stock. Royal Bank Of Canada started coverage on shares of ARM in a research note on Wednesday, January 14th. They set an “outperform” rating and a $140.00 target price for the company. The Goldman Sachs Group cut ARM from a “neutral” rating to a “sell” rating and lowered their price objective for the stock from $160.00 to $120.00 in a research report on Monday, December 15th. Loop Capital upped their price objective on ARM from $155.00 to $180.00 and gave the stock a “buy” rating in a research report on Wednesday, November 12th. Rosenblatt Securities cut their target price on ARM from $180.00 to $175.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Citigroup cut ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Sixteen equities research 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. According to MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and an average price target of $160.81.

ARM Stock Performance

Shares of ARM stock opened at $123.70 on Thursday. The business has a 50-day simple moving average of $117.14 and a 200-day simple moving average of $138.07. ARM has a one year low of $80.00 and a one year high of $183.16. The company has a market cap of $130.69 billion, a PE ratio of 164.93, a P/E/G ratio of 6.64 and a beta of 4.35.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter last year, the company earned $0.39 earnings per share. The firm’s revenue was up 26.3% compared to the same quarter last year. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. On average, sell-side analysts predict that ARM will post 0.9 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ARM

Several large investors have recently modified their holdings of the company. Sustainable Growth Advisers LP lifted its stake in shares of ARM by 116.8% in the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock worth $559,171,000 after acquiring an additional 1,862,626 shares during the period. Capital Research Global Investors purchased a new position in ARM during the third quarter worth about $243,098,000. Northwestern Mutual Wealth Management Co. lifted its position in ARM by 2,623.5% in the fourth 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. Hyperion Asset Management Ltd purchased a new stake in ARM in the 3rd quarter valued at approximately $202,980,000. Finally, Schroder Investment Management Group increased its position in 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. 7.53% of the stock is owned by institutional investors and hedge funds.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

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.