ARM (NASDAQ:ARM) Shares Gap Up on Analyst Upgrade

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) gapped up before the market opened on Friday after HSBC upgraded the stock from a reduce rating to a buy rating. The stock had previously closed at $129.82, but opened at $136.90. HSBC now has a $205.00 price target on the stock, up from their previous price target of $90.00. ARM shares last traded at $134.7620, with a volume of 3,071,596 shares.

ARM has been the subject of several other reports. Mizuho reduced their target price on ARM from $190.00 to $160.00 and set an “outperform” rating for the company in a research note on Thursday, February 5th. Rosenblatt Securities cut their price target on shares of ARM from $180.00 to $175.00 and set a “buy” rating for the company in a report on Thursday, February 5th. TD Cowen reduced their price objective on shares of ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Bank of America reaffirmed a “neutral” rating and set a $120.00 price objective on shares of ARM in a report on Tuesday, January 13th. Finally, Oddo Bhf set a $170.00 target price on shares of ARM in a research report on Monday, January 5th. Seventeen research 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, the stock has a consensus rating of “Moderate Buy” and an average target price of $162.82.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pacific Heights Asset Management LLC boosted its holdings in shares of ARM by 32.1% during the 3rd quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock worth $26,176,000 after purchasing an additional 45,000 shares during the last quarter. Orion Porfolio Solutions LLC acquired a new stake in shares of ARM in the second quarter valued at approximately $6,277,000. Stanley Laman Group Ltd. purchased a new position in ARM during the third quarter worth approximately $6,219,000. Voya Investment Management LLC lifted its position in ARM by 15.5% during the third quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock worth $28,644,000 after buying an additional 27,228 shares in the last quarter. Finally, Lansdowne Partners UK LLP acquired a new position in ARM during the third quarter worth $8,486,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM Trading Up 4.3%

The company has a fifty day simple moving average of $118.21 and a 200-day simple moving average of $134.03. The company has a market capitalization of $143.04 billion, a PE ratio of 180.07, a PEG ratio of 8.86 and a beta of 4.11.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, February 4th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.During the same quarter in the previous year, the firm earned $0.39 EPS. The company’s quarterly 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, equities analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

About ARM

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.