TD Cowen Lowers ARM (NASDAQ:ARM) Price Target to $165.00

ARM (NASDAQ:ARM) had its price target cut by analysts at TD Cowen from $190.00 to $165.00 in a report released on Thursday,Benzinga reports. The firm currently has a “buy” rating on the stock. TD Cowen’s target price would suggest a potential upside of 44.51% from the stock’s current price.

Other equities research analysts have also recently issued reports about the stock. Wells Fargo & Company dropped their target price on shares of ARM from $160.00 to $150.00 and set an “overweight” rating for the company in a research report on Thursday. Oddo Bhf set a $170.00 price objective on ARM in a research report on Monday, January 5th. Loop Capital upped their target price on ARM from $155.00 to $180.00 and gave the stock a “buy” rating in a report on Wednesday, November 12th. KeyCorp restated an “overweight” rating on shares of ARM in a research note on Thursday. Finally, Barclays lifted their price target on ARM from $115.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Seventeen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and a consensus price target of $160.81.

ARM Price Performance

NASDAQ:ARM traded up $9.28 during mid-day trading on Thursday, reaching $114.18. 18,036,125 shares of the company’s stock traded hands, compared to its average volume of 7,238,349. The company has a 50 day moving average price of $117.81 and a 200-day moving average price of $138.52. The firm has a market capitalization of $120.63 billion, a price-to-earnings ratio of 145.71, 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.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.The business’s quarterly revenue was up 26.3% compared to the same quarter last year. During the same period last year, the company earned $0.39 EPS. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, analysts forecast that ARM will post 0.9 EPS for the current year.

Hedge Funds Weigh In On ARM

Institutional investors and hedge funds have recently modified their holdings of the stock. Sustainable Growth Advisers LP boosted its stake in ARM by 116.8% in the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock worth $559,171,000 after purchasing an additional 1,862,626 shares in the last quarter. Capital Research Global Investors purchased a new position in ARM in the third quarter worth about $243,098,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of ARM by 2,623.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after buying an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd purchased a new stake in shares of ARM during the third quarter valued at approximately $202,980,000. Finally, Schroder Investment Management Group increased its position in shares of ARM by 41.7% during the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock valued at $767,611,000 after acquiring an additional 1,396,684 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat consensus — ARM reported $0.43 EPS on $1.24B revenue, topping estimates and showing strong year‑over‑year revenue growth, which helped lift sentiment. Why Arm Holdings Stock Was Climbing Today
• Positive Sentiment: Company guided Q4 revenue and EPS above Street expectations, citing continued demand for Arm designs in AI datacenters — this forward guidance supports a bullish view on AI-related revenue. Arm forecasts quarterly revenue above estimates
• Positive Sentiment: Analyst upgrades — New Street Research upgraded ARM to a “buy,” adding to bullish analyst attention that can support near‑term buying pressure. New Street upgrades ARM
• Neutral Sentiment: Mixed analyst price‑target moves — Several firms trimmed price targets (Wells Fargo, Mizuho, Rosenblatt) but many maintained overweight/outperform/buy ratings, leaving overall analyst tone constructive but more conservative on valuation. Analyst price-target changes
• Negative Sentiment: Licensing revenue narrowly missed estimates and shares fell in after‑hours trading on the miss — licensing is a high‑margin, outcome‑sensitive line that investors watch closely for sustainability of profits. Shares plunge after licensing miss
• Negative Sentiment: Smartphone market headwinds — memory shortages and OEM production cuts could constrain handset volumes and smartphone royalty growth next year, a direct risk to ARM’s royalty revenue stream. Memory shortage pressures chip makers
• Negative Sentiment: Market reaction to guidance and margins was mixed — some commentary called the Q4 guide “in‑line,” which tempered enthusiasm despite top‑line beats. Arm guidance called in-line

ARM Company Profile

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.