ARM (NASDAQ:ARM) Trading Up 8% – Should You Buy?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded up 8% during trading on Wednesday . The company traded as high as $117.28 and last traded at $115.6940. 4,322,030 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 5,645,658 shares. The stock had previously closed at $107.17.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ARM. The Goldman Sachs Group lowered shares of ARM from a “neutral” rating to a “sell” rating and cut their price target for the company from $160.00 to $120.00 in a research note on Monday, December 15th. Needham & Company LLC reissued a “hold” rating on shares of ARM in a research report on Thursday, November 6th. Loop Capital raised their target price on ARM from $155.00 to $180.00 and gave the stock a “buy” rating in a research note on Wednesday, November 12th. Oddo Bhf set a $170.00 price target on ARM in a research note on Monday, January 5th. Finally, Morgan Stanley reduced their price objective on ARM from $180.00 to $171.00 and set an “overweight” rating for the company in a research note on Thursday, October 9th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $175.50.

ARM Price Performance

The firm has a fifty day moving average of $123.53 and a 200 day moving average of $141.46. The stock has a market capitalization of $120.81 billion, a price-to-earnings ratio of 146.60, a price-to-earnings-growth ratio of 6.34 and a beta of 4.34.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.33 by $0.06. The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.The business’s quarterly revenue was up 34.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. Research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ARM. Amundi boosted its stake in shares of ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after acquiring an additional 2,345 shares in the last quarter. Empowered Funds LLC raised its holdings in ARM by 28.8% in the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock worth $522,000 after purchasing an additional 1,094 shares during the period. Farther Finance Advisors LLC boosted its position in ARM by 139.0% during the second quarter. Farther Finance Advisors LLC now owns 3,863 shares of the company’s stock worth $625,000 after purchasing an additional 2,247 shares in the last quarter. Golden State Equity Partners purchased a new position in ARM during the second quarter worth approximately $263,000. Finally, Hoey Investments Inc. grew its holdings in ARM by 159.3% in the second quarter. Hoey Investments Inc. now owns 15,206 shares of the company’s stock valued at $2,459,000 after purchasing an additional 9,341 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.