Morgan Stanley Cuts ARM (NASDAQ:ARM) Price Target to $135.00

ARM (NASDAQ:ARM) had its target price cut by Morgan Stanley from $180.00 to $135.00 in a research report report published on Friday morning,Benzinga reports. They currently have an overweight rating on the stock.

Other research analysts have also issued reports about the stock. Benchmark reaffirmed a “hold” rating on shares of ARM in a research note on Thursday, November 6th. Royal Bank Of Canada initiated coverage on shares of ARM in a report on Wednesday, January 14th. They issued an “outperform” rating and a $140.00 target price for the company. UBS Group cut their price target on shares of ARM from $200.00 to $195.00 and set a “buy” rating on the stock in a report on Thursday, November 6th. Mizuho increased their price objective on shares of ARM from $180.00 to $190.00 and gave the stock an “outperform” rating in a research report on Thursday, November 6th. Finally, TD Cowen restated a “buy” rating on shares of ARM in a research report on Thursday, November 6th. Sixteen investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and a consensus price target of $172.14.

ARM Trading Down 2.6%

Shares of NASDAQ:ARM opened at $116.07 on Friday. The company has a market cap of $122.63 billion, a price-to-earnings ratio of 148.81, a PEG ratio of 6.95 and a beta of 4.34. ARM has a 12 month low of $80.00 and a 12 month high of $183.16. The company has a 50-day moving average price of $121.93 and a 200 day moving average price of $140.80.

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

Institutional Investors Weigh In On ARM

Several hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC increased its stake in shares of ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after buying an additional 97 shares during the period. Grey Fox Wealth Advisors LLC bought a new position in ARM during the 3rd quarter worth about $28,000. Huntington National Bank purchased a new position in ARM during the 2nd quarter valued at about $30,000. FWL Investment Management LLC bought a new stake in shares of ARM in the 2nd quarter valued at about $34,000. Finally, Strategic Investment Solutions Inc. IL raised its holdings in shares of ARM by 238.1% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock valued at $40,000 after purchasing an additional 200 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.