Rosenblatt Securities Cuts ARM (NASDAQ:ARM) Price Target to $250.00

ARM (NASDAQ:ARM) had its price target reduced by investment analysts at Rosenblatt Securities from $270.00 to $250.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a “buy” rating on the stock. Rosenblatt Securities’ price target would suggest a potential upside of 2.94% from the company’s previous close.

Other analysts have also recently issued reports about the company. Barclays lifted their price objective on ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Susquehanna raised their target price on ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research report on Friday, July 17th. New Street Research raised ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target on the stock in a research note on Thursday. Finally, Sanford C. Bernstein set a $500.00 price objective on ARM in a report on Wednesday, June 17th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $285.33.

ARM Stock Up 8.0%

Shares of ARM stock opened at $242.85 on Friday. The company has a market cap of $259.38 billion, a PE ratio of 250.36, a P/E/G ratio of 6.99 and a beta of 3.76. The business has a 50 day moving average of $329.98 and a 200 day moving average of $212.71. ARM has a 52 week low of $100.02 and a 52 week high of $452.70.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, July 29th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.56%. The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the company posted $0.35 EPS. The company’s quarterly revenue was up 22.4% compared to the same quarter last year. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, research analysts anticipate that ARM will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In related news, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the transaction, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This trade represents a 24.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Jason Child sold 31,920 shares of ARM stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the transaction, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their position. 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 have sold 216,049 shares of company stock worth $52,101,605.

Institutional Investors Weigh In On ARM

Institutional investors have recently made changes to their positions in the company. Amundi lifted its position in ARM by 24.8% in the 1st quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after acquiring an additional 2,345 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of ARM by 28.8% during the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares in the last quarter. Schnieders Capital Management LLC. boosted its position in shares of ARM by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after buying an additional 200 shares during the last quarter. Bank of Nova Scotia bought a new stake in ARM in the 2nd quarter worth about $556,000. Finally, State Street Corp lifted its stake in ARM by 14.7% during the 2nd quarter. State Street Corp now owns 441,445 shares of the company’s stock valued at $71,399,000 after acquiring an additional 56,656 shares during the period. Hedge funds and other institutional investors own 7.53% of the company’s stock.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Results exceeded expectations: Fiscal Q1 revenue rose 22.4% year over year to $1.29 billion, above the roughly $1.26 billion consensus, while adjusted earnings per share of $0.45 surpassed estimates of $0.40. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: AI demand is strengthening: Management highlighted record demand for its AI-focused CPU roadmap, data-center expansion and momentum from cloud customers. Data-center royalty revenue reportedly doubled, while demand for Arm’s next-generation AGI CPU exceeded $2 billion. ARM Q1 Earnings Call Highlights AI CPU Demand and Data Center Growth
• Positive Sentiment: Above-consensus outlook: Arm guided fiscal Q2 earnings per share to $0.43-$0.51, ahead of the $0.39 analyst estimate, and forecast revenue above expectations. Citi maintained a Buy rating and $300 target, while TD Cowen and RBC retained bullish ratings with targets of $350 and $340, respectively. Arm remains key AI infrastructure beneficiary despite softer handset outlook
• Neutral Sentiment: Analyst views are mixed: Needham reaffirmed Buy with a $255 target, but Morgan Stanley kept an Equal Weight rating and lifted its target only to $212, implying concern that expectations may already reflect much of the AI opportunity.
• Negative Sentiment: Smartphone and royalty risks remain: Weak handset demand, memory-price pressure and supply constraints are expected to limit near-term royalty growth, with second-quarter royalty growth reportedly guided at about 13%. Investors are also concerned about execution and Arm’s exceptionally elevated valuation, leaving little room for disappointing results. Memory Prices Hit Arm’s Royalties as Stock Falls

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.