ARM (NASDAQ:ARM) Price Target Cut to $340.00 by Analysts at Royal Bank Of Canada

ARM (NASDAQ:ARM) had its target price lowered by Royal Bank Of Canada from $475.00 to $340.00 in a research note published on Thursday morning,Benzinga reports. The brokerage currently has an outperform rating on the stock.

Several other research firms have also recently weighed in on ARM. TD Cowen dropped their price objective on shares of ARM from $475.00 to $350.00 and set a “buy” rating for the company in a research report on Thursday. Raymond James Financial restated an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. The Goldman Sachs Group upped their price target on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. KeyCorp raised their price target on ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. Finally, Sanford C. Bernstein set a $500.00 price objective on ARM in a report on Wednesday, June 17th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $286.17.

ARM Trading Up 8.0%

ARM opened at $242.85 on Thursday. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The stock has a market capitalization of $259.38 billion, a PE ratio of 250.36, a PEG ratio of 6.99 and a beta of 3.76. The firm has a 50-day moving average price of $329.98 and a two-hundred day moving average price of $212.71.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.56%. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the business earned $0.35 earnings per share. ARM’s quarterly revenue was up 22.4% on a year-over-year basis. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, research analysts predict that ARM will post 1.12 EPS for the current year.

Insider Buying and Selling

In related news, insider Charlotte Claire Eaton sold 7,805 shares of the company’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $290.01, for a total value of $2,263,528.05. Following the completion of the sale, the insider owned 5,000 shares in the company, valued at approximately $1,450,050. This represents a 60.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider William Abbey sold 6,566 shares of the stock in a transaction dated 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 completion of the transaction, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. The trade was a 24.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 216,049 shares of company stock worth $52,101,605.

Institutional Trading of ARM

A number of institutional investors and hedge funds have recently modified their holdings of ARM. GoalFusion Wealth Management LLC bought a new position in ARM during the 2nd quarter worth approximately $321,000. Redhawk Wealth Advisors Inc. bought a new position in shares of ARM during the second quarter worth $375,000. Wealthcare Advisory Partners LLC bought a new position in shares of ARM during the second quarter worth $326,000. First Bank & Trust bought a new position in shares of ARM during the second quarter worth $274,000. Finally, Vertrix Wealth Management LLC acquired a new position in shares of ARM in the 2nd quarter valued at $292,000. 7.53% of the stock is owned by institutional investors.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q1 2027 revenue of $1.29 billion, up 22.4% year over year and above analysts’ estimates of approximately $1.26 billion. Adjusted earnings per share of $0.45 also exceeded the $0.40 consensus. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Management issued second-quarter EPS guidance of $0.43 to $0.51, above the $0.39 analyst consensus, while revenue guidance also exceeded expectations. The outlook reflects sustained demand for Arm-based processors in AI data centers and cloud computing. Arm forecasts quarterly revenue above estimates on AI-driven chip demand
• Positive Sentiment: Data-center royalty revenue reportedly doubled, while demand for Arm’s AI and AGI CPU roadmap strengthened. Analysts said the company remains a key beneficiary of long-term AI infrastructure spending, prompting Citi to reaffirm its Buy rating and $300 price target. Arm remains key AI infrastructure beneficiary despite softer handset outlook, Citi says
• Neutral Sentiment: Analyst views remain mixed. Needham reiterated Buy with a $255 target, while TD Cowen and RBC maintained positive ratings but reduced their targets to $350 and $340, respectively. Morgan Stanley raised its target to $212 but retained an Equal Weight rating, implying execution and valuation concerns.
• Negative Sentiment: Smartphone market weakness and memory-price pressures are expected to constrain near-term royalty growth, with second-quarter royalty growth guided at about 13%. Investors also remain cautious because ARM trades at a very high earnings multiple, leaving limited room for disappointing results. Memory Prices Hit Arm’s Royalties as Stock Falls 4%

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.