Wells Fargo & Company Has Lowered Expectations for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price target decreased by Wells Fargo & Company from $195.00 to $160.00 in a report released on Monday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price indicates a potential upside of 39.46% from the company’s previous close.

Several other brokerages have also issued reports on ARM. Benchmark reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, November 6th. Needham & Company LLC reiterated a “hold” rating on shares of ARM in a research report on Thursday, November 6th. Rosenblatt Securities reiterated a “buy” rating and set a $180.00 price target on shares of ARM in a research report on Thursday, November 6th. JPMorgan Chase & Co. upped their price target on ARM from $175.00 to $180.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. Finally, Citigroup downgraded shares of ARM from a “buy” rating to a “hold” rating in a report on Tuesday, January 13th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $170.48.

ARM Trading Down 1.2%

Shares of ARM traded down $1.34 during mid-day trading on Monday, hitting $114.73. The company’s stock had a trading volume of 1,660,581 shares, compared to its average volume of 6,641,699. The firm has a market capitalization of $121.21 billion, a price-to-earnings ratio of 146.79, a PEG ratio of 6.95 and a beta of 4.34. The company’s 50-day moving average is $121.93 and its 200-day moving average is $140.80. ARM has a 52-week low of $80.00 and a 52-week high of $183.16.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.06. The firm had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.The firm’s quarterly revenue was up 34.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. As a group, sell-side analysts predict that ARM will post 0.9 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ARM

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Pacific Heights Asset Management LLC lifted its stake in shares of ARM by 32.1% in the third quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock valued at $26,176,000 after purchasing an additional 45,000 shares during the period. Orion Porfolio Solutions LLC purchased a new position in ARM in the second quarter valued at about $6,277,000. Voya Investment Management LLC lifted its position in shares of ARM by 15.5% during the 3rd quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock valued at $28,644,000 after acquiring an additional 27,228 shares during the period. Stanley Laman Group Ltd. purchased a new stake in shares of ARM during the 3rd quarter worth approximately $6,219,000. Finally, Zevenbergen Capital Investments LLC boosted its stake in shares of ARM by 4.7% during the 3rd quarter. Zevenbergen Capital Investments LLC now owns 499,772 shares of the company’s stock worth $70,713,000 after acquiring an additional 22,483 shares in the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

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.