ARM Holdings ARM underwent analysis by 13 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 4 | 1 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 3 | 1 | 0 | 0 |
| 2M Ago | 3 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 1 | 0 |
Analysts have recently evaluated ARM Holdings and provided 12-month price targets. The average target is $150.15, accompanied by a high estimate of $190.00 and a low estimate of $92.00. Witnessing a positive shift, the current average has risen by 21.09% from the previous average price target of $124.00.
Interpreting Analyst Ratings: A Closer Look
The standing of ARM Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Ananda Baruah | Loop Capital | Raises | Buy | $130.00 | $120.00 |
| Andrew Gardiner | Citigroup | Raises | Buy | $170.00 | $150.00 |
| Matthew Ramsay | TD Cowen | Raises | Buy | $150.00 | $125.00 |
| Ross Seymore | Deutsche Bank | Raises | Hold | $105.00 | $82.00 |
| Mark Lipacis | Evercore ISI Group | Raises | Outperform | $173.00 | $145.00 |
| Blayne Curtis | Barclays | Raises | Overweight | $125.00 | $105.00 |
| Hans Mosesmann | Rosenblatt | Maintains | Buy | $180.00 | $180.00 |
| Lee Simpson | Morgan Stanley | Raises | Overweight | $190.00 | $107.00 |
| John Difucci | Guggenheim | Raises | Buy | $169.00 | $110.00 |
| Vivek Arya | B of A Securities | Raises | Buy | $180.00 | $150.00 |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $143.00 | $110.00 |
| Sara Russo | Bernstein | Raises | Underperform | $92.00 | $72.00 |
| Mark Lipacis | Evercore ISI Group | Lowers | Outperform | $145.00 | $156.00 |
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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of ARM Holdings compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of ARM Holdings's stock. This analysis reveals shifts in analysts' expectations over time.
To gain a panoramic view of ARM Holdings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on ARM Holdings analyst ratings.
Unveiling the Story Behind 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. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.
ARM Holdings: Delving into Financials
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: ARM Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 39.11%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: ARM Holdings's net margin excels beyond industry benchmarks, reaching 23.75%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): ARM Holdings's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.07%, 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 2.82%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.04.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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