Needham & Company LLC Reaffirms “Buy” Rating for ARM (NASDAQ:ARM)

ARM (NASDAQ:ARM)‘s stock had its “buy” rating restated by equities research analysts at Needham & Company LLC in a research report issued on Thursday,Benzinga reports. They currently have a $255.00 price target on the stock. Needham & Company LLC’s price target would suggest a potential upside of 13.39% from the stock’s previous close.

ARM has been the topic of several other reports. HSBC cut shares of ARM from a “buy” rating to a “hold” rating and upped their price objective for the stock from $255.00 to $315.00 in a research note on Tuesday, July 14th. New Street Research lowered shares of ARM from a “buy” rating to a “neutral” rating in a report on Thursday, June 18th. Guggenheim reiterated a “buy” rating on shares of ARM in a research report on Thursday. UBS Group reduced their price objective on shares of ARM from $470.00 to $360.00 and set a “buy” rating on the stock in a research note on Monday, July 20th. Finally, The Goldman Sachs Group lifted their target price on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a report on Thursday, May 7th. Seventeen 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 data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $291.35.

ARM Stock Performance

NASDAQ:ARM opened at $224.89 on Thursday. The company has a market capitalization of $240.20 billion, a price-to-earnings ratio of 267.73, a PEG ratio of 7.61 and a beta of 3.76. The company has a 50-day moving average of $331.09 and a 200-day moving average of $211.79. ARM has a 52 week low of $100.02 and a 52 week high of $452.70.

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

Insider Buying and Selling at ARM

In other ARM news, insider Spencer Collins sold 51,961 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the sale, the insider owned 51,125 shares in the company, valued at $10,824,696.25. This trade represents a 50.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the transaction, the insider directly owned 5,543 shares in the company, valued at approximately $1,159,318.45. This trade represents a 81.45% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 216,049 shares of company stock valued at $52,101,605 in the last 90 days.

Institutional Investors Weigh In On ARM

A number of institutional investors have recently made changes to their positions in ARM. GAMMA Investing LLC increased 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 during the period. CreativeOne Wealth LLC grew its holdings in ARM by 5.0% in the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock valued at $200,000 after buying an additional 87 shares in the last quarter. AdvisorNet Financial Inc increased its position in ARM by 6.2% during the 1st quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after buying an additional 98 shares during the period. Moors & Cabot Inc. increased its position in ARM by 5.3% during the 3rd quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock worth $290,000 after buying an additional 103 shares during the period. Finally, Heritage Trust Co lifted its holdings in shares of ARM by 5.5% during the fourth quarter. Heritage Trust Co now owns 2,045 shares of the company’s stock worth $224,000 after buying an additional 107 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

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

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.