TD Cowen Cuts ARM (NASDAQ:ARM) Price Target to $165.00

ARM (NASDAQ:ARM) had its price target trimmed by TD Cowen from $190.00 to $165.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a buy rating on the stock.

A number of other research analysts also recently issued reports on ARM. UBS Group cut their price target on ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a report on Thursday. Raymond James Financial began coverage on ARM in a research report on Friday, November 21st. They set a “hold” rating on the stock. Evercore cut their target price on ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday. Jefferies Financial Group set a $170.00 price target on shares of ARM in a research report on Thursday. Finally, Morgan Stanley lowered their price target on shares of ARM from $180.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday, January 23rd. Sixteen investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $160.81.

ARM Stock Performance

NASDAQ ARM opened at $123.70 on Thursday. ARM has a one year low of $80.00 and a one year high of $183.16. The company has a market capitalization of $130.69 billion, a price-to-earnings ratio of 164.93, a price-to-earnings-growth ratio of 7.41 and a beta of 4.35. The company’s 50-day simple moving average is $117.14 and its two-hundred day simple moving average is $137.94.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The firm had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company’s quarterly revenue was up 26.3% on a year-over-year basis. During the same period last year, the firm earned $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Equities analysts expect that ARM will post 0.9 earnings per share for the current fiscal year.

Institutional Trading of ARM

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

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

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.