ARM (NASDAQ:ARM) Upgraded at HSBC

ARM (NASDAQ:ARM) was upgraded by equities researchers at HSBC from a “reduce” rating to a “buy” rating in a research report issued on Friday,Benzinga reports. The brokerage presently has a $205.00 target price on the stock, up from their previous target price of $90.00. HSBC’s price objective points to a potential upside of 57.91% from the company’s current price.

Other research analysts have also issued reports about the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research note on Wednesday, January 21st. Jefferies Financial Group set a $170.00 price target on ARM in a report on Thursday, February 5th. Raymond James Financial initiated coverage on ARM in a research note on Friday, November 21st. They set a “hold” rating on the stock. Benchmark reissued a “hold” rating on shares of ARM in a report on Thursday, February 5th. Finally, KeyCorp reaffirmed an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. Seventeen analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $162.82.

ARM Price Performance

Shares of NASDAQ ARM opened at $129.82 on Friday. The stock has a market capitalization of $137.16 billion, a PE ratio of 173.09, a P/E/G ratio of 8.86 and a beta of 4.11. ARM has a one year low of $80.00 and a one year high of $183.16. The business’s fifty day moving average price is $118.21 and its 200-day moving average price is $134.03.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter last year, the business earned $0.39 earnings per share. The company’s quarterly revenue was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, equities analysts expect that ARM will post 0.9 EPS for the current fiscal year.

Institutional Investors Weigh In On ARM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its holdings in shares of ARM by 126.0% during the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after buying an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC bought a new stake in ARM during the third quarter worth about $28,000. Mcguire Capital Advisors Inc. purchased a new stake in ARM in the fourth quarter worth about $30,000. Navalign LLC purchased a new position in shares of ARM during the fourth quarter valued at approximately $33,000. Finally, FWL Investment Management LLC purchased a new position in ARM during the second quarter valued at $34,000. 7.53% of the stock is owned by hedge funds and other 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.