ARM (NASDAQ:ARM) Price Target Raised to $212.00

ARM (NASDAQ:ARM) had its target price hoisted by Morgan Stanley from $202.00 to $212.00 in a research note published on Thursday,Benzinga reports. They currently have an equal weight rating on the stock.

Other analysts also recently issued reports about the company. The Goldman Sachs Group boosted their target price on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Benchmark began coverage on ARM in a research report on Thursday, July 16th. They issued a “hold” rating for the company. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a research note on Thursday, May 7th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective on the stock in a research report on Thursday. Finally, Susquehanna increased their price objective on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Eighteen research 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. Based on data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Trading Down 0.8%

Shares of ARM opened at $239.69 on Thursday. ARM has a twelve month low of $100.02 and a twelve month high of $452.70. The firm has a market capitalization of $256.01 billion, a P/E ratio of 247.11, a PEG ratio of 7.45 and a beta of 3.76. The firm’s 50-day moving average is $328.64 and its two-hundred day moving average is $212.90.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same period last year, the firm earned $0.35 EPS. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. Analysts predict that ARM will post 1.12 EPS for the current year.

Insider Buying and Selling

In other news, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares in the company, valued at $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charlotte Claire Eaton sold 7,805 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total value of $2,263,528.05. Following the completion of the sale, the insider owned 5,000 shares in the company, valued at $1,450,050. This represents a 60.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 216,049 shares of company stock worth $52,101,605 in the last 90 days.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Syntax Research Inc. purchased a new position in ARM in the 1st quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in shares of ARM during the first quarter worth about $30,000. Allied Private Wealth LLC acquired a new position in shares of ARM in the second quarter valued at approximately $71,000. FWL Investment Management LLC acquired a new position in shares of ARM in the second quarter valued at approximately $34,000. Finally, Cassaday & Co Wealth Management LLC purchased a new position in shares of ARM during the first quarter valued at approximately $40,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal first-quarter revenue of $1.29 billion, up 22.4% year over year, and adjusted EPS of $0.45, beating analyst estimates. Management also issued second-quarter guidance above consensus, supported by rising AI and data-center demand. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Data-center royalty revenue reportedly doubled, while demand for Arm’s AI-focused CPU and upcoming AGI CPU platform is strengthening. One report said customer demand for the AGI CPU has topped $2 billion, reinforcing the long-term AI infrastructure opportunity. ARM Q1 Earnings Call Highlights AI CPU Demand and Data Center Growth
• Positive Sentiment: Citi reiterated its Buy rating and $300 price target, saying Arm remains well positioned for long-term AI infrastructure growth despite weaker handset conditions. Arm remains key AI infrastructure beneficiary despite softer handset outlook
• Neutral Sentiment: Rosenblatt lowered its target to $250 while maintaining Buy; TD Cowen cut its target to $350 and RBC reduced its target to $340, although both retained positive ratings. Morgan Stanley raised its target to $212 but kept an Equal Weight rating.
• Negative Sentiment: Investors remain concerned that second-quarter royalty growth of roughly 13% will be restrained by smartphone weakness and memory-price pressures. These near-term concerns overshadowed the earnings beat for some shareholders. Memory Prices Hit Arm’s Royalties as Stock Falls
• Negative Sentiment: Valuation remains a major risk: ARM has gained 110.5% year to date and trades at a very high earnings multiple. Analysts warn that continued gains require exceptional execution across AI servers, cloud, edge, and automotive markets, leaving the stock vulnerable if growth slows or the AGI CPU rollout disappoints.

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.