Expert Ratings For ARM Holdings

Analysts' ratings for ARM Holdings ARM over the last quarter vary from bullish to bearish, as provided by 12 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for ARM Holdings, presenting an average target of $95.42, a high estimate of $130.00, and a low estimate of $70.00. This upward trend is apparent, with the current average reflecting a 38.83% increase from the previous average price target of $68.73.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive ARM Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ARM Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of ARM Holdings compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of ARM Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of ARM Holdings's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on ARM Holdings analyst ratings.

Get to Know ARM Holdings Better

Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Unraveling the Financial Story of ARM Holdings

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: ARM Holdings displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 13.81%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: ARM Holdings's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 10.56%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.78%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): ARM Holdings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.25%, the company may face hurdles in achieving optimal financial returns.

Debt Management: ARM Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.