ARM (NASDAQ:ARM) Stock Rating Upgraded by Needham & Company LLC

ARM (NASDAQ:ARM) was upgraded by research analysts at Needham & Company LLC from a “hold” rating to a “buy” rating in a research report issued on Thursday, Marketbeat.com reports. The firm currently has a $200.00 target price on the stock. Needham & Company LLC’s target price suggests a potential upside of 38.76% from the company’s current price.

Other equities analysts also recently issued research reports about the stock. Citigroup downgraded shares of ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Susquehanna raised ARM from a “neutral” rating to a “positive” rating and set a $150.00 price objective on the stock in a research report on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of ARM from $125.00 to $140.00 and gave the stock a “hold” rating in a research report on Wednesday. Benchmark restated a “hold” rating on shares of ARM in a research note on Thursday, February 5th. Finally, Wells Fargo & Company raised their price target on ARM from $150.00 to $165.00 and gave the stock an “overweight” rating in a report on Wednesday. Nineteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $168.17.

ARM Price Performance

Shares of NASDAQ:ARM opened at $144.13 on Thursday. The business has a 50 day simple moving average of $122.48 and a two-hundred day simple moving average of $134.35. ARM has a 1 year low of $80.00 and a 1 year high of $183.16. The firm has a market capitalization of $152.27 billion, a PE ratio of 192.17, a price-to-earnings-growth ratio of 9.78 and a beta of 4.11.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, February 5th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same period in the previous year, the firm earned $0.39 earnings per share. The business’s revenue was up 26.3% on a year-over-year basis. Equities research analysts expect that ARM will post 0.9 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total value of $3,157,313.60. Following the completion of the sale, the chief financial officer owned 174,706 shares in the company, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Rene A. Haas sold 23,867 shares of the company’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer owned 290,965 shares in the company, valued at $46,894,829.05. This trade represents a 7.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 53,133 shares of company stock worth $8,288,586 over the last quarter.

Institutional Trading of ARM

Hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC increased its holdings in ARM by 126.0% in 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 last quarter. Grey Fox Wealth Advisors LLC purchased a new position in ARM during the 3rd quarter worth $28,000. Mcguire Capital Advisors Inc. purchased a new position in ARM during the 4th quarter worth $30,000. Navalign LLC acquired a new position in ARM in the fourth quarter valued at $33,000. Finally, FWL Investment Management LLC acquired a new stake in ARM during the 2nd quarter worth approximately $34,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled an in-house AGI/data‑center CPU and said it could add roughly $15 billion in annual revenue within a few years, plus Meta is positioned as an early customer — a major new revenue pathway beyond licensing. Arm Holdings Stock Soars As Company Targets $15 Billion In Annual Sales From New In-House Chip
• Positive Sentiment: A cluster of analyst upgrades and price‑target raises (Needham, Wells Fargo, Deutsche Bank, Rosenblatt, Barclays and others) has lifted sentiment and institutional interest, supporting higher forward expectations. Arm’s stock nabs another upgrade. It’s never been this loved by analysts.
• Positive Sentiment: Unusually large call‑option volume signals speculative bullish positioning from traders, which can amplify near‑term upside on positive headlines. Stock Traders Purchase Large Volume of Call Options on ARM (NASDAQ:ARM)
• Neutral Sentiment: Trading volume jumped on the analyst news/upgrade flow, suggesting active repositioning by funds and retail investors — volume confirms conviction but can also precede profit‑taking. ARM (NASDAQ:ARM) Sees Strong Trading Volume on Analyst Upgrade
• Neutral Sentiment: Technical metrics improved (Relative Strength rating jumped), which reflects momentum but also increases the chance of short‑term mean reversion. Arm Holdings Stock Sees Relative Strength Rating Jump To 87
• Negative Sentiment: Mainstream press and analysts warn the pivot from IP licensor to chip seller must go nearly perfectly — execution, customer wins beyond Meta and competitive intensity are material risks that could damp long‑term upside. Arm’s Timing Is Good, but Big Chip Move Now Has to Go Perfectly
• Negative Sentiment: Sentiment/technicals show the stock entered overbought territory and the shares now carry a rich valuation, so profit‑taking and a pullback were predictable after the sharp run. Arm Stock Just Entered Overbought Territory. Is It Too Late to Chase the Rally Here?

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.