Beyond The Numbers: 9 Analysts Discuss ARM Holdings Stock

Across the recent three months, 9 analysts have shared their insights on ARM Holdings ARM, expressing a variety of opinions spanning 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.

Analysts have set 12-month price targets for ARM Holdings, revealing an average target of $166.22, a high estimate of $195.00, and a low estimate of $140.00. Observing a 12.2% increase, the current average has risen from the previous average price target of $148.14.

Investigating Analyst Ratings: An Elaborate Study

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to ARM Holdings. This insight gives a snapshot of analysts' perspectives on 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 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of ARM Holdings's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on ARM Holdings analyst ratings.

All You Need to Know 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. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.

ARM Holdings: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, ARM Holdings showcased positive performance, achieving a revenue growth rate of 4.71% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the 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 12.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): ARM Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.83%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.34%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: ARM Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.04.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and 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.

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