ARM’s (ARM) “Buy” Rating Reaffirmed at Needham & Company LLC

ARM (NASDAQ:ARM)‘s stock had its “buy” rating restated by stock analysts at Needham & Company LLC in a report released on Thursday,Benzinga reports. They currently have a $255.00 price objective on the stock. Needham & Company LLC’s price objective suggests a potential upside of 13.39% from the company’s current price.

Other equities research analysts have also issued reports about the company. TD Cowen lifted their price target on ARM from $265.00 to $475.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Guggenheim reaffirmed a “buy” rating on shares of ARM in a research report on Thursday. Bank of America reiterated a “neutral” rating on shares of ARM in a research note on Thursday. The Goldman Sachs Group increased their price target on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research note on Thursday, May 7th. Finally, New Street Research downgraded shares of ARM from a “buy” rating to a “neutral” rating in a report on Thursday, June 18th. Seventeen equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $291.35.

ARM Trading Down 8.1%

NASDAQ ARM opened at $224.89 on Thursday. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The firm’s fifty day simple moving average is $331.09 and its 200-day simple moving average is $211.79. The company has a market capitalization of $240.20 billion, a PE ratio of 267.73, a price-to-earnings-growth ratio of 7.61 and a beta of 3.76.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.43% and a net margin of 18.37%.The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter last year, the firm earned $0.35 earnings per share. The business’s revenue for the quarter was up 22.4% on a year-over-year basis. As a group, analysts predict that ARM will post 1.12 EPS for the current year.

Insider Activity at ARM

In related news, insider Spencer Collins sold 51,961 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares of the company’s stock, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider William Abbey sold 10,887 shares of the firm’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $224.14, for a total transaction of $2,440,212.18. Following the completion of the transaction, the insider owned 43,353 shares in the company, valued at $9,717,141.42. The trade was a 20.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 216,049 shares of company stock valued at $52,101,605.

Hedge Funds Weigh In On ARM

A number of institutional investors have recently made changes to their positions in ARM. Morgan Stanley boosted its stake in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after purchasing an additional 45,314 shares during the period. Invesco Ltd. lifted its holdings in shares of ARM by 36.9% during the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after buying an additional 654,727 shares during the last quarter. Coatue Management LLC lifted its holdings in shares of ARM by 1.8% during the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after buying an additional 40,174 shares during the last quarter. Wellington Management Group LLP boosted its position in shares of ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after acquiring an additional 631,576 shares during the period. Finally, Schroder Investment Management Group grew its stake in shares of ARM by 11.0% in the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock worth $206,739,000 after acquiring an additional 187,035 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported adjusted earnings of $0.45 per share, above the $0.40 analyst consensus, while revenue rose 22.4% year over year to $1.29 billion, also exceeding expectations. Management cited strong demand for Arm-based chips in artificial-intelligence data centers. Arm Fiscal Q1 Adjusted Earnings, Revenue Rise; Q2 Guidance Set
• Positive Sentiment: Second-quarter guidance was above Wall Street expectations, including projected EPS of $0.43 to $0.51 versus a $0.39 consensus estimate. The outlook reflects continued momentum from AI infrastructure, custom cloud chips and increasing use of Arm architecture in data-center CPUs. Arm forecasts quarterly revenue above estimates on AI-driven chip demand
• Neutral Sentiment: The earnings call emphasized expanding opportunities in AI and “agentic” computing, as more sophisticated chips generate licensing and royalty revenue for Arm. However, investors are balancing that long-term opportunity against the company’s dependence on semiconductor industry growth and customer spending cycles. Arm Holdings plc Q1 2027 Earnings Call Transcript
• Negative Sentiment: Despite beating estimates, the forecast was viewed by some investors as insufficient to justify ARM’s extremely high valuation, with the shares trading at a triple-digit forward price-to-earnings multiple. Reports also highlighted weakness in the broader smartphone market, which may pressure near-term royalty growth and offset some AI-related gains. Qualcomm and Arm see momentum in AI, but smartphone weakness weighs on both stocks

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.