ARM (NASDAQ:ARM) Stock Price Up 4.7% – Time to Buy?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were up 4.7% during mid-day trading on Friday. The company traded as high as $177.62 and last traded at $174.62. 6,453,377 shares traded hands during mid-day trading, a decline of 14% from the average daily volume of 7,475,054 shares. The stock had previously closed at $166.72.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, ahead of estimates. Licensing revenue rose 50%, and data-center royalties doubled, highlighting demand for Arm technology in AI infrastructure. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s push into its own AGI CPU could broaden its opportunity beyond chip-design royalties; management sees potential for up to $2 billion in revenue in fiscal 2027–28. Oracle has also said it plans to offer Arm AGI CPU instances in 2027. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: UBS and JPMorgan retained Buy/Overweight ratings despite cutting their price targets, indicating continued analyst confidence in potential upside. UBS analyst recommendations JPMorgan price target
• Neutral Sentiment: AI and data-center stocks faced market-wide pressure after midterm-election results raised concerns about a possible slowdown in data-center investment. Major indexes recovered some losses Friday, offering a more supportive backdrop, though uncertainty remains. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: Investors focused on weaker smartphone-related royalties and concerns that handset demand may soften, offsetting Arm’s strong data-center growth. Royalty revenue is recurring, so slower growth here may temper expectations for future earnings. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns amplified the post-earnings selloff: investors questioned whether Arm’s high expectations are justified even after the quarterly revenue beat. UBS cut its target from $320 to $270, and JPMorgan lowered its target from $255 to $245. Arm stock slides as results stoke valuation doubts

Wall Street Analyst Weigh In

Several research analysts have recently commented on ARM shares. The Goldman Sachs Group reiterated a “sell” rating and set a $160.00 price target on shares of ARM in a report on Thursday. New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a report on Thursday, July 30th. Susquehanna raised their price objective on shares of ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. TD Cowen reduced their target price on shares of ARM from $350.00 to $250.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, UBS Group decreased their target price on shares of ARM from $320.00 to $270.00 and set a “buy” rating on the stock in a report on Thursday. Nineteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $291.72.

ARM Price Performance

The firm has a 50 day simple moving average of $252.78 and a 200-day simple moving average of $229.93. The company has a market cap of $186.51 billion, a price-to-earnings ratio of 200.71, a PEG ratio of 5.10 and a beta of 3.93.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.48 by $0.04. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.38 billion. ARM had a return on equity of 11.57% and a net margin of 17.13%. The company’s quarterly revenue was up 27.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.39 EPS. Research analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.17 EPS for the current fiscal year.

Insider Transactions at ARM

In related news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the sale, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

Institutional investors have recently made changes to their positions in the stock. Moors & Cabot Inc. increased its stake in shares of ARM by 13.0% during the third quarter. Moors & Cabot Inc. now owns 2,667 shares of the company’s stock worth $773,000 after buying an additional 306 shares during the period. ICICI Prudential Asset Management Co Ltd lifted its stake in ARM by 1.5% in the third quarter. ICICI Prudential Asset Management Co Ltd now owns 7,117 shares of the company’s stock worth $2,062,000 after acquiring an additional 106 shares during the last quarter. Allworth Financial LP lifted its stake in ARM by 12.3% in the third quarter. Allworth Financial LP now owns 2,548 shares of the company’s stock worth $738,000 after acquiring an additional 279 shares during the last quarter. Fisher Asset Management LLC grew its holdings in ARM by 18.4% during the 3rd quarter. Fisher Asset Management LLC now owns 1,120 shares of the company’s stock worth $325,000 after acquiring an additional 174 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in ARM by 77.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 13,912 shares of the company’s stock worth $4,030,000 after acquiring an additional 6,053 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them.

Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.