ARM (NASDAQ:ARM) Stock Price Target Lowered at UBS Group

ARM (NASDAQ:ARM) had its price target cut by UBS Group from $320.00 to $270.00 in a research report sent to investors on Thursday,Benzinga reports. They currently have a buy rating on the stock.

Several other research analysts also recently weighed in on ARM. Royal Bank Of Canada dropped their target price on shares of ARM from $340.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday. The Goldman Sachs Group restated a “sell” rating and issued a $160.00 price target on shares of ARM in a research report on Thursday. Piper Sandler reaffirmed an “overweight” rating and issued a $270.00 price objective (down from $320.00) on shares of ARM in a research note on Thursday. Rosenblatt Securities decreased their price objective on shares of ARM from $270.00 to $250.00 and set a “buy” rating for the company in a research note on Friday, July 31st. Finally, Guggenheim reissued a “buy” rating and set a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Nineteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $291.72.

ARM Stock Down 13.1%

NASDAQ:ARM opened at $166.72 on Thursday. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The firm has a market capitalization of $178.07 billion, a price-to-earnings ratio of 191.63, a price-to-earnings-growth ratio of 5.60 and a beta of 3.93. The stock has a fifty day simple moving average of $254.39 and a 200 day simple moving average of $229.59.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.04. ARM had a return on equity of 11.86% and a net margin of 17.13%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the previous year, the company earned $0.39 EPS. The business’s revenue for the quarter was up 27.1% compared to the same quarter last year. Equities analysts predict that ARM will post 1.17 earnings per share for the current year.

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the completion of the sale, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of hedge funds have recently made changes to their positions in ARM. Envestnet Portfolio Solutions Inc. acquired a new stake in shares of ARM in the 2nd quarter valued at $2,755,000. QRG Capital Management Inc. increased its position in ARM by 32.1% during the second quarter. QRG Capital Management Inc. now owns 9,591 shares of the company’s stock worth $3,401,000 after buying an additional 2,330 shares during the last quarter. Fig Financial Advisory Services Inc. ADV acquired a new position in ARM during the third quarter worth $1,070,000. BlueCrest Capital Management Ltd acquired a new position in ARM during the second quarter worth $1,359,000. Finally, Wedmont Private Capital bought a new position in ARM during the third quarter valued at about $1,322,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, up 27% year over year, and adjusted EPS of $0.52, topping consensus estimates of $1.38 billion and $0.48. Licensing revenue rose 50%, while data-center royalties more than doubled, highlighting demand tied to AI and cloud computing. Article: ARM Holdings Q2 2027 Earnings Call Highlights
• Positive Sentiment: Management’s outlook for the next quarter was reported above analyst expectations, and the company pointed to potential growth from its AGI CPU opportunity. Oracle plans to offer Arm AGI CPU instances in 2027, adding to the longer-term data-center growth case. Article: Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Neutral Sentiment: JPMorgan cut its price target from $255 to $245 but kept an Overweight rating. The lower target reflects a more cautious valuation view, while the retained rating signals continued confidence in the shares. Article: ARM Given New $245 Price Target at JPMorgan
• Negative Sentiment: Investors appear more concerned about weaker-than-expected smartphone-related royalties and slower growth in recurring royalties overall. The reports note a gap between record chip shipments and royalty revenue, raising questions about how quickly unit growth translates into sales. Article: Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns and an analyst downgrade have added to selling pressure: investors may see limited room for disappointment after Arm’s strong run, even with results above expectations. Article: Arm stock slides as Q2 results stoke valuation doubts

About ARM

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them.

Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.