ARM Holdings plc (NASDAQ:ARMH) was downgraded by stock analysts at Benchmark Co. from a “buy” rating to a “hold” rating in a report issued on Monday, TheFlyOnTheWall.com reports. They currently have a $50.00 target price on the stock, down from their previous target price of $54.00. Benchmark Co.’s target price points to a potential upside of 4.28% from the company’s current price.
The analysts wrote, “Due primarily to our less favorable opinion of the chip group, we are downgrading our rating on shares of ARM Holdings (ARMH) from ‘Buy’ to ‘Hold’. To adjust for a lower assumed valuation multiple, we are lowering our price target from $54 to $50. We are not changing our estimates. Shares are trading at lofty valuation multiple, supported by several positive secular trends as well as an improving competitive market position. However, a high valuation multiple may make shares susceptible to underperformance should the chip group fall out of favor. We are aware that ARM TechCon kicks off this week, and mostly likely, the company will make several important announcements. Thus, our rating downgrade may seem slightly premature.”
A number of other firms have also recently commented on ARMH. Analysts at Zacks upgraded shares of ARM Holdings plc from a “neutral” rating to an “outperform” rating in a research note to investors on Friday. They now have a $52.80 price target on the stock. Separately, analysts at UBS AG downgraded shares of ARM Holdings plc from a “buy” rating to a “neutral” rating in a research note to investors on Wednesday, October 23rd. Finally, analysts at Espirito Santo Investment Bank Research upgraded shares of ARM Holdings plc from a “neutral” rating to a “buy” rating in a research note to investors on Friday, October 18th. Three analysts have rated the stock with a sell rating, seven have issued a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average price target of $49.36.
ARM Holdings plc (NASDAQ:ARMH) traded down 2.06% during mid-day trading on Monday, hitting $46.96. 1,306,167 shares of the company’s stock traded hands. ARM Holdings plc has a 52 week low of $27.12 and a 52 week high of $50.56. The stock’s 50-day moving average is $41.71 and its 200-day moving average is $42.15. The company has a market cap of $21.891 billion and a P/E ratio of 91.33.
ARM Holdings plc (NASDAQ:ARMH) last released its earnings data on Tuesday, October 22nd. The company reported $0.05 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.24 by $0.19. The company had revenue of $184.00 million for the quarter, compared to the consensus estimate of $274.39 million. During the same quarter last year, the company posted $0.04 earnings per share. ARM Holdings plc’s revenue was up 27.2% compared to the same quarter last year. On average, analysts predict that ARM Holdings plc will post $0.98 earnings per share for the current fiscal year.
ARM Holdings plc (NASDAQ:ARMH) designs microprocessors, physical Internet protocol (IP) and related technology and software, and sells development tools.
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