ARM (NASDAQ:ARM) Stock Price Target Cut by JPMorgan Chase & Co.

ARM (NASDAQ:ARM) had its target price reduced by investment analysts at JPMorgan Chase & Co. from $255.00 to $245.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price objective would indicate a potential upside of 40.30% from the company’s previous close.

ARM has been the subject of several other research reports. Susquehanna upped their target price on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Needham & Company LLC restated a “buy” rating and issued a $255.00 price target on shares of ARM in a research report on Thursday. HSBC restated a “hold” rating and issued a $215.00 price target on shares of ARM in a research report on Thursday. Guggenheim reaffirmed a “buy” rating and set a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. Finally, Piper Sandler reiterated an “overweight” rating and issued a $270.00 price objective (down from $320.00) on shares of ARM in a report on Thursday. Nineteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and a consensus price target of $291.72.

ARM Trading Up 4.7%

Shares of ARM traded up $7.90 on Thursday, reaching $174.62. 6,498,900 shares of the company’s stock were exchanged, compared to its average volume of 5,021,303. The stock has a market capitalization of $186.51 billion, a P/E ratio of 200.71, a price-to-earnings-growth ratio of 5.84 and a beta of 3.93. The business has a 50 day moving average price of $252.78 and a two-hundred day moving average price of $229.93. ARM has a 12 month low of $100.02 and a 12 month high of $452.70.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same period in the prior year, the business posted $0.39 earnings per share. ARM’s revenue was up 27.1% compared to the same quarter last year. Equities research analysts predict that ARM will post 1.17 EPS for the current year.

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at $46,032,600. The trade was a 6.35% decrease in their position. 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 Trading of ARM

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

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, ahead of estimates. Licensing revenue rose 50%, and data-center royalties doubled, highlighting demand for Arm technology in AI infrastructure. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s push into its own AGI CPU could broaden its opportunity beyond chip-design royalties; management sees potential for up to $2 billion in revenue in fiscal 2027–28. Oracle has also said it plans to offer Arm AGI CPU instances in 2027. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: UBS and JPMorgan retained Buy/Overweight ratings despite cutting their price targets, indicating continued analyst confidence in potential upside. UBS analyst recommendations JPMorgan price target
• Neutral Sentiment: AI and data-center stocks faced market-wide pressure after midterm-election results raised concerns about a possible slowdown in data-center investment. Major indexes recovered some losses Friday, offering a more supportive backdrop, though uncertainty remains. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: Investors focused on weaker smartphone-related royalties and concerns that handset demand may soften, offsetting Arm’s strong data-center growth. Royalty revenue is recurring, so slower growth here may temper expectations for future earnings. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns amplified the post-earnings selloff: investors questioned whether Arm’s high expectations are justified even after the quarterly revenue beat. UBS cut its target from $320 to $270, and JPMorgan lowered its target from $255 to $245. Arm stock slides as 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.