ARM (NASDAQ:ARM) Stock Rating Upgraded by HSBC

ARM (NASDAQ:ARM) was upgraded by stock analysts at HSBC from a “reduce” rating to a “buy” rating in a research note issued on Friday,Benzinga reports. The brokerage currently has a $205.00 target price on the stock, up from their previous target price of $90.00. HSBC’s target price suggests a potential upside of 57.91% from the company’s current price.

A number of other research analysts have also recently weighed in on ARM. Citigroup cut ARM from a “buy” rating to a “hold” rating in a research report on Tuesday, January 13th. Rosenblatt Securities reduced their price objective on shares of ARM from $180.00 to $175.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. Bank of America restated a “neutral” rating and set a $120.00 target price on shares of ARM in a research note on Tuesday, January 13th. Raymond James Financial initiated coverage on ARM in a report on Friday, November 21st. They set a “hold” rating on the stock. Finally, Oddo Bhf set a $170.00 target price on ARM in a research report on Monday, January 5th. Seventeen investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and an average target price of $162.82.

ARM Trading Up 1.1%

Shares of ARM opened at $129.82 on Friday. ARM has a 1-year low of $80.00 and a 1-year high of $183.16. The firm has a market cap of $137.16 billion, a PE ratio of 173.09, a P/E/G ratio of 8.86 and a beta of 4.11. The firm has a fifty day simple moving average of $118.21 and a two-hundred day simple moving average of $134.03.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, topping 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 in the prior year, the business earned $0.39 EPS. The business’s quarterly revenue was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, research analysts forecast that ARM will post 0.9 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Schroder Investment Management Group lifted its position in shares of ARM by 41.7% in the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after buying an additional 1,396,684 shares in the last quarter. Morgan Stanley grew its holdings in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after buying an additional 45,314 shares in the last quarter. Invesco Ltd. increased its stake in ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after acquiring an additional 654,727 shares during the last quarter. Coatue Management LLC raised its holdings in shares of ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after acquiring an additional 40,174 shares in the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of ARM by 41.6% during the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after acquiring an additional 631,576 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

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.