ARM (NASDAQ:ARM) Price Target Cut to $245.00 by Analysts at JPMorgan Chase & Co.

ARM (NASDAQ:ARM) had its price objective cut by analysts at JPMorgan Chase & Co. from $255.00 to $245.00 in a research note issued to investors on Thursday, Benzinga reports. The firm currently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 46.95% from the stock’s previous close.

Other research analysts have also issued reports about the stock. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Thursday, October 15th. UBS Group cut their price target on shares of ARM from $360.00 to $320.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Rosenblatt Securities dropped their price target on ARM from $270.00 to $250.00 and set a “buy” rating for the company in a research note on Friday, July 31st. Jefferies Financial Group reiterated a “buy” rating and set a $320.00 target price on shares of ARM in a research report on Monday, July 20th. Finally, The Goldman Sachs Group restated a “sell” rating and issued a $160.00 price target on shares of ARM in a research report on Thursday. Nineteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $293.72.

ARM Stock Down 13.1%

Shares of NASDAQ ARM traded down $25.08 during trading hours on Thursday, hitting $166.72. The company had a trading volume of 15,330,146 shares, compared to its average volume of 7,483,889. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The firm’s 50 day moving average is $256.08 and its 200-day moving average is $229.28. The stock has a market capitalization of $178.07 billion, a P/E ratio of 171.88, a price-to-earnings-growth ratio of 5.91 and a beta of 3.93.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same period in the previous year, the company earned $0.39 earnings per share. The firm’s revenue for the quarter was up 27.1% on a year-over-year basis. On average, sell-side analysts predict that ARM will post 1.17 earnings per share for the current year.

Insider Activity

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

Hedge Funds Weigh In On ARM

A number of hedge funds have recently bought and sold shares of ARM. Silver Grove Financial Group Inc. lifted its stake in shares of ARM by 47.2% in the 3rd quarter. Silver Grove Financial Group Inc. now owns 209 shares of the company’s stock valued at $61,000 after purchasing an additional 67 shares during the period. Northbridge Financial Group LLC bought a new stake in ARM during the 3rd quarter valued at $210,000. Lido Advisors LLC lifted its position in ARM by 17.1% in the 3rd quarter. Lido Advisors LLC now owns 19,621 shares of the company’s stock valued at $5,683,000 after acquiring an additional 2,867 shares in the last quarter. Cornerstone Wealth Management LLC boosted its position in shares of ARM by 2.3% during the third quarter. Cornerstone Wealth Management LLC now owns 4,183 shares of the company’s stock valued at $1,212,000 after buying an additional 95 shares during the last quarter. Finally, New York Life Investment Management LLC bought a new position in ARM during the 3rd quarter valued at $295,000. Institutional investors own 7.53% of the company’s stock.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: AI and data-center demand remain strong: data-center royalties more than doubled, licensing revenue rose about 50%, and Arm reported record chip shipments. Management also expressed confidence in its AGI CPU opportunity, with identified demand that could support up to $2 billion in revenue across fiscal 2027–28. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s revenue and earnings beat analysts’ estimates, and its outlook for the next quarter was reported above expectations, reflecting continued AI-related demand. Arm forecasts third-quarter revenue above estimates
• Neutral Sentiment: Longer-term AI prospects include Oracle’s plan to offer Arm AGI CPU instances in 2027 and Arm’s claim that its chips power more than half of hyperscaler servers; the financial impact will depend on adoption and production volumes. Oracle Cloud plans to offer Arm AGI CPU instances in 2027
• Negative Sentiment: Investors were concerned that smartphone royalties were weaker than expected, with rising memory costs potentially pressuring handset demand. Overall recurring royalty growth also lagged licensing growth, highlighting that chip shipments do not necessarily convert quickly into higher royalty revenue. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: With expectations and valuation still elevated, the earnings beat may not have been enough to satisfy investors seeking faster, broader royalty growth. Chip-sector concerns—including possible packaging-substrate constraints—added to pressure on the shares. Arm Stock Has an Apple and Android Problem

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.