A Closer Look at 12 Analyst Recommendations For ARM Holdings

In the preceding three months, 12 analysts have released ratings for ARM Holdings ARM, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for ARM Holdings, presenting an average target of $130.5, a high estimate of $180.00, and a low estimate of $85.00. Marking an increase of 12.69%, the current average surpasses the previous average price target of $115.80.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils 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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ARM Holdings compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for ARM Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into ARM Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on ARM Holdings analyst ratings.

About ARM Holdings

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.

ARM Holdings: A Financial Overview

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: ARM Holdings displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 12.62%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 24.14%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): ARM Holdings's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.35%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): ARM Holdings's ROA excels beyond industry benchmarks, reaching 2.98%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.04, ARM Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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