UBS Group Has Lowered Expectations for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its target price cut by UBS Group from $195.00 to $175.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. UBS Group’s price target would indicate a potential upside of 52.33% from the company’s current price.

A number of other analysts also recently weighed in on the stock. Loop Capital increased their price target on shares of ARM from $155.00 to $180.00 and gave the company a “buy” rating in a research report on Wednesday, November 12th. Oddo Bhf set a $170.00 target price on shares of ARM in a research note on Monday, January 5th. Bank of America reissued a “neutral” rating and set a $120.00 price target on shares of ARM in a research report on Tuesday, January 13th. The Goldman Sachs Group cut shares of ARM from a “neutral” rating to a “sell” rating and lowered their price objective for the company from $160.00 to $120.00 in a research report on Monday, December 15th. Finally, Needham & Company LLC reiterated a “hold” rating on shares of ARM in a report on Thursday, November 6th. Sixteen research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $169.52.

ARM Price Performance

Shares of NASDAQ:ARM opened at $114.88 on Monday. The stock has a market cap of $121.37 billion, a price-to-earnings ratio of 147.28, a P/E/G ratio of 6.87 and a beta of 4.34. The company has a 50 day moving average of $121.00 and a 200-day moving average of $140.34. ARM has a one year low of $80.00 and a one year high of $183.16.

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

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of ARM. Pacific Heights Asset Management LLC lifted its stake in ARM by 32.1% in the third quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock valued at $26,176,000 after acquiring an additional 45,000 shares during the last quarter. Orion Porfolio Solutions LLC bought a new stake in shares of ARM in the 2nd quarter valued at about $6,277,000. Voya Investment Management LLC lifted its stake in ARM by 15.5% in the 3rd quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock valued at $28,644,000 after purchasing an additional 27,228 shares during the last quarter. Stanley Laman Group Ltd. acquired a new position in ARM during the third quarter worth approximately $6,219,000. Finally, Zevenbergen Capital Investments LLC raised its stake in ARM by 4.7% in the third quarter. Zevenbergen Capital Investments LLC now owns 499,772 shares of the company’s stock valued at $70,713,000 after buying an additional 22,483 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

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.