ARM (NASDAQ:ARM) Stock Price Target Cut by UBS Group

ARM (NASDAQ:ARM) had its price target reduced by stock analysts at UBS Group from $320.00 to $270.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has a “buy” rating on the stock. UBS Group‘s price target indicates a potential upside of 61.95% from the stock’s current price.

A number of other research firms have also recently commented on ARM. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price for the company in a research note on Thursday, July 30th. Jefferies Financial Group restated a “buy” rating and set a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Morgan Stanley raised their price target on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Royal Bank Of Canada decreased their price target on shares of ARM from $340.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday. Finally, The Goldman Sachs Group reiterated a “sell” rating and set a $160.00 price objective on shares of ARM in a research note on Thursday. Nineteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $291.72.

ARM Stock Down 13.1%

Shares of ARM stock opened at $166.72 on Thursday. The firm’s 50 day moving average price is $254.39 and its 200-day moving average price is $229.59. ARM has a 52-week low of $100.02 and a 52-week high of $452.70. The company has a market cap of $178.07 billion, a P/E ratio of 191.63, a PEG ratio of 5.60 and a beta of 3.93.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share 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 business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter last year, the company earned $0.39 earnings per share. The company’s quarterly revenue was up 27.1% on a year-over-year basis. As a group, equities research analysts forecast that ARM will post 1.17 EPS for the current fiscal year.

Insider Activity at ARM

In related news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the sale, the chief financial officer owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Focus Financial Network Inc. grew its position in shares of ARM by 0.9% in the third quarter. Focus Financial Network Inc. now owns 4,686 shares of the company’s stock valued at $1,357,000 after purchasing an additional 40 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of ARM by 18.7% in the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock valued at $144,000 after purchasing an additional 64 shares during the last quarter. Allworth Financial LP lifted its position in ARM by 2.9% during the second quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock worth $804,000 after buying an additional 65 shares in the last quarter. Silver Grove Financial Group Inc. lifted its position in ARM by 47.2% during the third quarter. Silver Grove Financial Group Inc. now owns 209 shares of the company’s stock worth $61,000 after buying an additional 67 shares in the last quarter. Finally, MCF Advisors LLC lifted its position in ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock worth $271,000 after buying an additional 80 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

More ARM News

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

ARM Company Profile

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.