ARM (NASDAQ:ARM) Given New $212.00 Price Target at Morgan Stanley

ARM (NASDAQ:ARM) had its price objective lifted by investment analysts at Morgan Stanley from $202.00 to $212.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price target would indicate a potential downside of 10.75% from the stock’s previous close.

ARM has been the subject of several other research reports. Susquehanna raised their price objective on shares of ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target for the company in a report on Thursday. Needham & Company LLC reissued a “buy” rating and set a $255.00 price objective on shares of ARM in a report on Thursday. Benchmark assumed coverage on ARM in a research report on Thursday, July 16th. They issued a “hold” rating on the stock. Finally, Rosenblatt Securities upped their target price on shares of ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Eighteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, ARM presently has an average rating of “Moderate Buy” and an average target price of $287.83.

ARM Price Performance

NASDAQ ARM traded up $12.63 on Thursday, hitting $237.52. 9,125,848 shares of the stock were exchanged, compared to its average volume of 8,579,918. The company has a market capitalization of $253.69 billion, a price-to-earnings ratio of 283.14, a P/E/G ratio of 7.61 and a beta of 3.76. The company’s 50-day moving average price is $331.09 and its two-hundred day moving average price is $211.79. ARM has a 52-week low of $100.02 and a 52-week high of $452.70.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a return on equity of 12.43% and a net margin of 18.37%.The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the company posted $0.35 EPS. The company’s revenue was up 22.4% compared to the same quarter last year. Equities analysts predict that ARM will post 1.12 EPS for the current fiscal year.

Insider Activity

In other news, insider William Abbey sold 10,887 shares of ARM stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $224.14, for a total value 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jason Child sold 31,920 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the transaction, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 216,049 shares of company stock valued at $52,101,605.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in ARM. GAMMA Investing LLC boosted its stake in ARM by 18.7% in the 2nd quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after purchasing an additional 64 shares in the last quarter. CreativeOne Wealth LLC grew its position in shares of ARM by 5.0% during the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after buying an additional 87 shares in the last quarter. AdvisorNet Financial Inc boosted its stake in ARM by 6.2% in the first quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock valued at $254,000 after acquiring an additional 98 shares in the last quarter. Moors & Cabot Inc. increased its holdings in shares of ARM by 5.3% in the third quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock valued at $290,000 after purchasing an additional 103 shares during the period. Finally, Heritage Trust Co lifted its stake in shares of ARM by 5.5% in the 4th quarter. Heritage Trust Co now owns 2,045 shares of the company’s stock valued at $224,000 after purchasing an additional 107 shares during the period. Institutional investors own 7.53% of the company’s stock.

More ARM News

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%

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.