ARM (NASDAQ:ARM) Stock Price Up 2.9% – Time to Buy?

by · The Markets Daily

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report) shot up 2.9% during trading on Tuesday. The stock traded as high as $206.89 and last traded at $202.49. 3,265,879 shares were traded during mid-day trading, a decline of 56% from the average daily volume of 7,435,955 shares. The stock had previously closed at $196.79.

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 EPS of $0.52, topping analyst estimates. Licensing revenue rose 50%, while data-center royalties more than doubled, reflecting demand for AI and cloud computing. Arm Shares Slip Despite Q2 Double-Beat: Details
  • Positive Sentiment: Management highlighted demand for its AGI CPU, with identified revenue potential of up to $2 billion across fiscal 2027–28. Arm also said its architecture now powers more than half of hyperscaler servers, supporting the longer-term growth case. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
  • Neutral Sentiment: JPMorgan lowered its price target to $245 from $255 but maintained an Overweight rating, indicating continued optimism while tempering its valuation expectations. JPMorgan Chase & Co. ratings
  • Negative Sentiment: Investors were concerned that smartphone-related royalties were weaker than expected. Royalty revenue is tied to chips actually shipped, and the articles note that record chip volumes have not yet translated into comparable royalty growth; memory costs may also pressure smartphone demand. Arm stock falls as weak smartphone royalties offset AI data-centre growth
  • Negative Sentiment: The strong results and AI opportunity did not ease concerns that growth in recurring royalties may lag licensing gains. Arm’s high valuation may leave little room for execution disappointments, while broader chip-sector weakness and supply constraints added to investor caution. Arm Stocks Fall Despite Doubling Data-Center Royalties

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ARM. KeyCorp raised their price objective on shares of ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. TD Cowen reduced their target price on ARM from $350.00 to $250.00 and set a “buy” rating on the stock in a research note on Thursday. JPMorgan Chase & Co. lowered their target price on ARM from $255.00 to $245.00 and set an “overweight” rating on the stock in a report on Thursday. Guggenheim reiterated a “buy” rating and set a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Finally, Barclays dropped their price target on ARM from $360.00 to $325.00 and set an “overweight” rating for the company in a research report on Thursday. Nineteen 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 stock currently has a consensus rating of “Moderate Buy” and an average price target of $293.72.

View Our Latest Research Report on ARM

ARM Stock Down 13.1%

The firm has a market capitalization of $178.07 billion, a PE ratio of 208.48, a P/E/G ratio of 5.60 and a beta of 3.93. The business’s fifty day moving average price is $254.39 and its 200 day moving average price is $229.59.

ARM (NASDAQ:ARM – Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.38 billion. ARM had a net margin of 17.13% and a return on equity of 11.86%. The company’s revenue was up 27.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.39 earnings per share. As a group, sell-side analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.17 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction 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 completion of the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

Several hedge funds have recently made changes to their positions in ARM. Focus Financial Network Inc. raised its position in 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 during the period. GAMMA Investing LLC lifted its stake in shares of ARM by 18.7% during the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after purchasing an additional 64 shares in the last quarter. Allworth Financial LP lifted its stake in shares of 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 purchasing an additional 65 shares in the last quarter. Silver Grove Financial Group Inc. boosted its position 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 buying an additional 67 shares during the period. Finally, MCF Advisors LLC boosted its position 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 buying an additional 80 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

(Get Free Report)

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.

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