Wells Fargo & Company Issues Positive Forecast for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price target upped by investment analysts at Wells Fargo & Company from $220.00 to $255.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price points to a potential upside of 18.73% from the company’s current price.

ARM has been the subject of several other reports. HSBC upgraded ARM from a “reduce” rating to a “buy” rating and upped their price objective for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Mizuho lifted their price target on shares of ARM from $230.00 to $255.00 and gave the company an “outperform” rating in a report on Wednesday. Morgan Stanley reissued an “equal weight” rating and issued a $150.00 price objective (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. Citigroup cut shares of ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Nineteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $186.08.

ARM Stock Down 9.5%

Shares of ARM traded down $22.53 during mid-day trading on Thursday, hitting $214.77. 13,548,984 shares of the company’s stock were exchanged, compared to its average volume of 7,581,934. The firm has a market cap of $226.90 billion, a price-to-earnings ratio of 287.09, a price-to-earnings-growth ratio of 9.39 and a beta of 3.40. The stock’s 50-day simple moving average is $152.53 and its 200-day simple moving average is $138.08. ARM has a 52 week low of $100.02 and a 52 week high of $239.50.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a net margin of 17.15% and a return on equity of 14.01%. Analysts forecast that ARM will post 0.85 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

In related news, CEO Rene A. Haas sold 9,299 shares of the stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total value of $1,495,744.15. Following the completion of the sale, the chief executive officer directly owned 273,680 shares in the company, valued at $44,021,428. This represents a 3.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jason Child sold 21,280 shares of the firm’s stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total value of $3,830,400.00. Following the transaction, the chief financial officer directly owned 153,426 shares of the company’s stock, valued at approximately $27,616,680. This represents a 12.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 83,712 shares of company stock worth $13,614,730.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ARM. Pacific Heights Asset Management LLC grew its stake in shares of ARM by 32.1% in the 3rd quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock worth $26,176,000 after acquiring an additional 45,000 shares in the last quarter. Paragon Capital Management Inc. bought a new position in shares of ARM during the fourth quarter valued at about $826,000. Lansdowne Partners UK LLP purchased a new position in ARM during the third quarter worth about $8,486,000. Hyperion Asset Management Ltd bought a new stake in ARM in the 3rd quarter worth about $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in ARM by 34.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after buying an additional 6,232 shares during the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly beat and upbeat guidance: ARM beat revenue and EPS estimates for the fiscal Q4 and guided Q1 revenue/adjusted EPS above consensus, which initially pushed the stock higher after hours. Earnings/Slides
• Positive Sentiment: Strong AI demand / $2B in customer demand: Management said >$2 billion of demand for its new Arm AGI data?center CPUs, signaling a new, potentially higher?margin revenue stream beyond licensing. WSJ: $2B Demand
• Positive Sentiment: Analyst upgrades and higher price targets: Multiple firms raised targets and kept bullish ratings (Rosenblatt, Needham, Mizuho), which supports upside narratives for AI/data?center exposure. Benzinga: Analyst Notes
• Neutral Sentiment: Business model pivot risk/reward: Coverage notes ARM is shifting toward producing data?center silicon (potentially higher returns) — this is strategic upside but introduces execution/competitive risk with customers. Seeking Alpha: Pivot Analysis
• Neutral Sentiment: Unusual options activity: Heavy call buying ahead of earnings suggests speculative bullish positioning; that can amplify volatility around news. MarketBeat: Options Note
• Negative Sentiment: Warning on smartphone market weakness: Management explicitly cited weaker handset demand and constrained supply in that segment — a direct threat to a meaningful licensing revenue stream. Investopedia: Smartphone Warning
• Negative Sentiment: Supply constraints for AI chip and execution worries: Management flagged possible inability to meet surging demand for the new AI CPU, which sparked concern that upside could be capped or delayed. Bloomberg/Yahoo: Supply Concerns
• Negative Sentiment: After?hours reversal and volatility: The stock erased an after?hours rally (reports show a full reversal of earlier gains), indicating traders are focused on the risk signaled by the smartphone/supply comments despite the otherwise strong quarter. Invezz: Overnight Reversal

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.