ARM (NASDAQ:ARM) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

ARM (NASDAQ:ARM) announced its earnings results on Wednesday. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05, FiscalAI reports. ARM had a return on equity of 12.43% and a net margin of 18.37%.The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM updated its Q2 2027 guidance to 0.430-0.510 EPS.

ARM Price Performance

NASDAQ ARM traded down $19.85 during trading hours on Wednesday, reaching $224.89. 9,070,723 shares of the company’s stock traded hands, compared to its average volume of 8,574,409. ARM has a 52-week low of $100.02 and a 52-week high of $452.70. The firm has a 50-day simple moving average of $331.72 and a 200 day simple moving average of $211.00. The firm has a market cap of $240.20 billion, a PE ratio of 267.73, a PEG ratio of 8.28 and a beta of 3.76.

Analyst Ratings Changes

A number of brokerages have issued reports on ARM. Rosenblatt Securities boosted their price objective on shares of ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Royal Bank Of Canada lifted their target price on shares of ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research report on Friday, July 17th. Needham & Company LLC reissued a “buy” rating and issued a $400.00 price target on shares of ARM in a research note on Tuesday, June 16th. Finally, Wells Fargo & Company lowered their price objective on shares of ARM from $410.00 to $350.00 and set an “overweight” rating for the company in a report on Wednesday, July 22nd. Seventeen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $297.65.

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the completion of the transaction, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. This trade represents a 15.48% decrease in their position. The transaction 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. Also, insider William Abbey sold 6,566 shares of ARM stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the transaction, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. The trade was a 24.20% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 216,049 shares of company stock worth $52,101,605 in the last ninety days.

Hedge Funds Weigh In On ARM

Institutional investors and hedge funds have recently modified their holdings of the stock. Amundi grew its position in ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after purchasing an additional 2,345 shares during the last quarter. Empowered Funds LLC raised its holdings in ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock worth $522,000 after buying an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. raised its holdings in ARM by 9.0% in the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock worth $393,000 after buying an additional 200 shares during the last quarter. Bank of Nova Scotia bought a new position in shares of ARM in the second quarter worth approximately $556,000. Finally, State Street Corp lifted its stake in shares of ARM by 14.7% in the second quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after buying an additional 56,656 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

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.