Guggenheim Issues Positive Forecast for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price objective increased by Guggenheim from $240.00 to $255.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a “buy” rating on the stock. Guggenheim’s price objective would suggest a potential upside of 18.73% from the company’s current price.

Other analysts have also recently issued reports about the company. Mizuho raised their target price on ARM from $230.00 to $255.00 and gave the company an “outperform” rating in a research report on Wednesday. KeyCorp reissued an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. The Goldman Sachs Group raised their price target on ARM from $110.00 to $125.00 and gave the company a “sell” rating in a report on Thursday, April 9th. Benchmark reaffirmed a “hold” rating on shares of ARM in a report on Thursday, February 5th. Finally, Needham & Company LLC increased their target price on shares of ARM from $200.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday. Nineteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $186.08.

ARM Stock Performance

Shares of ARM traded down $22.53 during midday trading on Thursday, hitting $214.77. 13,548,984 shares of the stock traded hands, compared to its average volume of 7,581,934. The firm has a market capitalization of $226.90 billion, a PE ratio of 287.09, a price-to-earnings-growth ratio of 9.39 and a beta of 3.40. The business’s 50 day moving average price is $152.53 and its two-hundred day moving average price is $138.08. ARM has a 1-year low of $100.02 and a 1-year high of $239.50.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.49 billion during the quarter. As a group, equities research analysts forecast that ARM will post 0.85 EPS for the current fiscal year.

Insider Activity

In related news, CFO Jason Child sold 21,280 shares of the stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $180.00, for a total transaction of $3,830,400.00. Following the completion of the sale, the chief financial officer directly owned 153,426 shares of the company’s stock, valued at $27,616,680. This represents a 12.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of the firm’s stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total transaction of $1,495,744.15. Following the sale, the chief executive officer owned 273,680 shares of the company’s stock, valued at $44,021,428. The trade was a 3.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 83,712 shares of company stock worth $13,614,730.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Morgan Stanley grew its holdings in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after acquiring an additional 45,314 shares during the last quarter. Invesco Ltd. boosted its position in shares of ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after purchasing an additional 654,727 shares during the period. Coatue Management LLC boosted its position in shares of ARM by 1.8% in the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after purchasing an additional 40,174 shares during the period. Wellington Management Group LLP increased its stake in ARM by 41.6% in the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after purchasing an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group raised its holdings in ARM by 11.0% during the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock worth $206,739,000 after buying an additional 187,035 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly beat and upbeat guidance: ARM beat revenue and EPS estimates for the fiscal Q4 and guided Q1 revenue/adjusted EPS above consensus, which initially pushed the stock higher after hours. Earnings/Slides
• Positive Sentiment: Strong AI demand / $2B in customer demand: Management said >$2 billion of demand for its new Arm AGI data?center CPUs, signaling a new, potentially higher?margin revenue stream beyond licensing. WSJ: $2B Demand
• Positive Sentiment: Analyst upgrades and higher price targets: Multiple firms raised targets and kept bullish ratings (Rosenblatt, Needham, Mizuho), which supports upside narratives for AI/data?center exposure. Benzinga: Analyst Notes
• Neutral Sentiment: Business model pivot risk/reward: Coverage notes ARM is shifting toward producing data?center silicon (potentially higher returns) — this is strategic upside but introduces execution/competitive risk with customers. Seeking Alpha: Pivot Analysis
• Neutral Sentiment: Unusual options activity: Heavy call buying ahead of earnings suggests speculative bullish positioning; that can amplify volatility around news. MarketBeat: Options Note
• Negative Sentiment: Warning on smartphone market weakness: Management explicitly cited weaker handset demand and constrained supply in that segment — a direct threat to a meaningful licensing revenue stream. Investopedia: Smartphone Warning
• Negative Sentiment: Supply constraints for AI chip and execution worries: Management flagged possible inability to meet surging demand for the new AI CPU, which sparked concern that upside could be capped or delayed. Bloomberg/Yahoo: Supply Concerns
• Negative Sentiment: After?hours reversal and volatility: The stock erased an after?hours rally (reports show a full reversal of earlier gains), indicating traders are focused on the risk signaled by the smartphone/supply comments despite the otherwise strong quarter. Invezz: Overnight Reversal

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.