Analysts Set Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) PT at $305.72

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) have received an average rating of “Moderate Buy” from the twenty-seven ratings firms that are currently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, seven have given a hold rating, eighteen have given a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $305.72.

A number of equities research analysts have recently weighed in on the company. Morgan Stanley boosted their target price on ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Barclays raised their price target on ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. Susquehanna lifted their price target on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research note on Tuesday, July 21st. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a research report on Thursday, July 30th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $320.00 price objective on shares of ARM in a research report on Monday, July 20th.

Insider Activity at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total value of $2,655,432.00. Following the transaction, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at $41,831,224.56. The trade was a 5.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

A number of large investors have recently added to or reduced their stakes in the company. IKE Capital LLC raised its stake in shares of ARM by 88.7% during the second quarter. IKE Capital LLC now owns 5,331 shares of the company’s stock valued at $1,890,000 after acquiring an additional 2,506 shares during the last quarter. Capstone Financial Advisors Inc. bought a new stake in shares of ARM in the second quarter worth about $308,000. MCF Advisors LLC grew its stake in shares of ARM by 11.7% in the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock worth $271,000 after purchasing an additional 80 shares during the last quarter. BlueCrest Capital Management Ltd purchased a new position in ARM during the 2nd quarter valued at about $1,359,000. Finally, NorthRock Partners LLC purchased a new position in ARM during the 2nd quarter valued at about $649,000. Institutional investors own 7.53% of the company’s stock.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Meta’s Muse AI agent is highlighting the need for more CPU capacity to handle inference, memory management and the multi-step tasks performed by autonomous software. Reports that Meta is working with Arm on an advanced processor have strengthened expectations for data-center royalty and chip-design opportunities. Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure
• Positive Sentiment: CEO Rene Haas said demand for Arm-based processors is “off the charts” and expressed increased confidence that the company can exceed its $2 billion annual revenue target for AI processors. That target would represent a significant expansion beyond Arm’s traditional mobile-licensing business. Arm Just Got a Major Vote of Confidence From Its CEO
• Positive Sentiment: Arm estimates that data centers could require more than four times their current CPU capacity per gigawatt as agentic AI adoption grows. This supports the long-term case for Arm’s energy-efficient architecture in cloud and hyperscale computing. Arm Gains 1.5% as Agentic AI Multiplies CPU Cores
• Neutral Sentiment: Recent earnings showed revenue growth of 22.4% year over year to $1.29 billion and adjusted earnings above analyst expectations, providing fundamental support for the AI-driven narrative.
• Negative Sentiment: Arm’s valuation remains unusually high, with a price-to-earnings ratio above 300 and a PEG ratio near 8.2. The average analyst target is below recent trading levels, suggesting that substantial AI growth is already reflected in the stock.
• Negative Sentiment: Packaging and foundry constraints could delay customers’ ability to produce Arm-based chips, potentially deferring near-term revenue despite strong demand. Supply constraints and Arm valuation risks

ARM Stock Performance

Shares of ARM opened at $333.20 on Friday. ARM has a fifty-two week low of $100.02 and a fifty-two week high of $452.70. The firm has a market cap of $355.88 billion, a price-to-earnings ratio of 343.51, a PEG ratio of 9.58 and a beta of 3.89. The firm has a 50 day moving average price of $261.18 and a 200-day moving average price of $250.89.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter last year, the company earned $0.35 EPS. The firm’s revenue was up 22.4% compared to the same quarter last year. As a group, equities research analysts predict that ARM will post 1.15 earnings per share for the current year.

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.