ARM (NASDAQ:ARM) Earns Hold Rating from Benchmark

ARM (NASDAQ:ARM)‘s stock had its “hold” rating restated by investment analysts at Benchmark in a report released on Thursday,Benzinga reports.

Several other analysts also recently weighed in on ARM. Mizuho dropped their target price on shares of ARM from $190.00 to $160.00 and set an “outperform” rating for the company in a report on Thursday. Loop Capital raised their price target on ARM from $155.00 to $180.00 and gave the stock a “buy” rating in a research report on Wednesday, November 12th. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and cut their price objective for the company from $160.00 to $120.00 in a report on Monday, December 15th. Royal Bank Of Canada initiated coverage on ARM in a research note on Wednesday, January 14th. They set an “outperform” rating and a $140.00 target price on the stock. Finally, JPMorgan Chase & Co. boosted their price target on shares of ARM from $175.00 to $180.00 and gave the stock an “overweight” rating in a research note on Thursday, November 6th. Sixteen equities 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’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $164.86.

ARM Trading Up 0.3%

Shares of NASDAQ:ARM opened at $104.90 on Thursday. The company has a market capitalization of $110.83 billion, a price-to-earnings ratio of 134.49, a PEG ratio of 6.26 and a beta of 4.35. ARM has a 12-month low of $80.00 and a 12-month high of $183.16. The business has a 50-day moving average price of $117.81 and a 200 day moving average price of $138.52.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, November 5th. The company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.06. The company had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. ARM had a net margin of 18.81% and a return on equity of 15.03%. ARM’s revenue was up 34.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.30 earnings per share. As a group, equities research analysts predict that ARM will post 0.9 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ARM

Several hedge funds and other institutional investors have recently made changes to their positions in ARM. Pacific Heights Asset Management LLC grew its holdings in shares of ARM by 32.1% during the third 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 position in ARM during the second quarter worth approximately $6,277,000. Voya Investment Management LLC boosted its holdings in shares of ARM by 15.5% in the third quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock valued at $28,644,000 after acquiring an additional 27,228 shares during the period. Stanley Laman Group Ltd. purchased a new position in shares of ARM during the third quarter worth approximately $6,219,000. Finally, Zevenbergen Capital Investments LLC raised its position in ARM by 4.7% in the 3rd quarter. Zevenbergen Capital Investments LLC now owns 499,772 shares of the company’s stock valued at $70,713,000 after purchasing an additional 22,483 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 beat on the headline numbers — ARM reported $0.43 EPS vs. $0.41 consensus and $1.24B revenue vs. $1.23B, driven by AI demand that lifted total revenue to a record. MarketBeat Earnings Summary
• Positive Sentiment: ARM guided FYQ4 above Street estimates — EPS guide of $0.540–$0.620 (consensus ~$0.490) and revenue guidance of $1.4–$1.5B, signaling continued strength from AI workloads. Reuters: Forecasts Quarterly Revenue Above Estimates
• Neutral Sentiment: Management highlighted AI as a durable driver (data centers to phones) and scheduled an “Arm Everywhere” event on March 24 to outline strategy — potential catalyst if new partnerships or product roadmaps are announced. BusinessWire: Arm Everywhere Event
• Negative Sentiment: Licensing revenue narrowly missed estimates — the shortfall drove a sharp after‑hours selloff (reported as a ~8% drop after hours), offsetting the topline beat. This licensing weakness is the immediate cause of negative investor reaction. CNBC: Shares Plunge After Licensing Miss
• Negative Sentiment: Broader industry headwinds: memory shortages are expected to constrain smartphone shipments, which weighs on ARM’s phone-related licensing and chip‑design demand and amplifies pressure from peers like Qualcomm. Analysts cited this as an additional near‑term drag. Reuters: Memory Shortage Hurting Chip Sales
• Neutral Sentiment: Mixed profitability signal — some outlets note profit fell year‑over‑year despite revenue growth, reflecting margin dynamics investors will watch as AI revenue scales. WSJ: Profit Falls Despite Revenue Growth

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.