ARM (NASDAQ:ARM) Price Target Cut to $250.00 by Analysts at Rosenblatt Securities

ARM (NASDAQ:ARM) had its target price cut by Rosenblatt Securities from $270.00 to $250.00 in a report issued on Friday, MarketBeat reports. They currently have a buy rating on the stock.

Other equities analysts have also issued reports about the stock. The Goldman Sachs Group raised their target price on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Sanford C. Bernstein set a $500.00 price target on shares of ARM in a research note on Wednesday, June 17th. Benchmark started coverage on shares of ARM in a research report on Thursday, July 16th. They set a “hold” rating on the stock. Needham & Company LLC restated a “buy” rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a report on Thursday, May 7th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $285.33.

ARM Stock Performance

Shares of ARM stock opened at $239.69 on Friday. The stock’s 50-day moving average is $328.64 and its two-hundred day moving average is $212.90. ARM has a 1 year low of $100.02 and a 1 year high of $452.70. The firm has a market cap of $256.01 billion, a price-to-earnings ratio of 247.11, a PEG ratio of 7.51 and a beta of 3.76.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The business’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 EPS. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. As a group, research analysts predict that ARM will post 1.12 EPS for the current year.

Insider Buying and Selling

In related news, insider William Abbey sold 6,566 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This trade represents a 24.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Charlotte Claire Eaton sold 7,805 shares of ARM stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the completion of the transaction, the insider owned 5,000 shares in the company, valued at approximately $1,450,050. This trade represents a 60.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 216,049 shares of company stock valued at $52,101,605 in the last ninety days.

Institutional Trading of ARM

Hedge funds have recently made changes to their positions in the company. Amundi increased its stake in shares of ARM by 24.8% during the first quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after acquiring an additional 2,345 shares during the period. Empowered Funds LLC lifted its position in ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares during the period. Schnieders Capital Management LLC. lifted its position in ARM by 9.0% in the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after purchasing an additional 200 shares during the period. Bank of Nova Scotia purchased a new stake in ARM in the 2nd quarter valued at approximately $556,000. Finally, State Street Corp boosted its holdings in ARM by 14.7% in the 2nd quarter. State Street Corp now owns 441,445 shares of the company’s stock valued at $71,399,000 after purchasing an additional 56,656 shares in the last quarter. Institutional investors and hedge funds 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 fiscal first-quarter revenue of $1.29 billion, up 22.4% year over year, and adjusted EPS of $0.45, beating analyst estimates. Management also issued second-quarter guidance above consensus, supported by rising AI and data-center demand. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Data-center royalty revenue reportedly doubled, while demand for Arm’s AI-focused CPU and upcoming AGI CPU platform is strengthening. One report said customer demand for the AGI CPU has topped $2 billion, reinforcing the long-term AI infrastructure opportunity. ARM Q1 Earnings Call Highlights AI CPU Demand and Data Center Growth
• Positive Sentiment: Citi reiterated its Buy rating and $300 price target, saying Arm remains well positioned for long-term AI infrastructure growth despite weaker handset conditions. Arm remains key AI infrastructure beneficiary despite softer handset outlook
• Neutral Sentiment: Rosenblatt lowered its target to $250 while maintaining Buy; TD Cowen cut its target to $350 and RBC reduced its target to $340, although both retained positive ratings. Morgan Stanley raised its target to $212 but kept an Equal Weight rating.
• Negative Sentiment: Investors remain concerned that second-quarter royalty growth of roughly 13% will be restrained by smartphone weakness and memory-price pressures. These near-term concerns overshadowed the earnings beat for some shareholders. Memory Prices Hit Arm’s Royalties as Stock Falls
• Negative Sentiment: Valuation remains a major risk: ARM has gained 110.5% year to date and trades at a very high earnings multiple. Analysts warn that continued gains require exceptional execution across AI servers, cloud, edge, and automotive markets, leaving the stock vulnerable if growth slows or the AGI CPU rollout disappoints.

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.