Ratings for ARM Holdings ARM were provided by 14 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 8 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 5 | 5 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $179.5, a high estimate of $225.00, and a low estimate of $140.00. Marking an increase of 10.71%, the current average surpasses the previous average price target of $162.14.
Breaking Down Analyst Ratings: A Detailed Examination
The perception of ARM Holdings by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Lee Simpson | Morgan Stanley | Lowers | Overweight | $150.00 | $175.00 |
| Ananda Baruah | Loop Capital | Raises | Buy | $195.00 | $180.00 |
| Joe Quatrochi | Wells Fargo | Raises | Overweight | $185.00 | $162.00 |
| Andrew Gardiner | Citigroup | Raises | Buy | $200.00 | $170.00 |
| Srini Pajjuri | Raymond James | Raises | Outperform | $175.00 | $160.00 |
| Mark Lipacis | Evercore ISI Group | Raises | Outperform | $202.00 | $176.00 |
| Hans Mosesmann | Rosenblatt | Raises | Buy | $225.00 | $180.00 |
| Vijay Rakesh | Mizuho | Raises | Outperform | $180.00 | $160.00 |
| Janardan Menon | Jefferies | Raises | Buy | $195.00 | $170.00 |
| Harlan Sur | JP Morgan | Raises | Overweight | $175.00 | $160.00 |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $174.00 | $159.00 |
| Chris Rolland | Susquehanna | Raises | Neutral | $140.00 | $118.00 |
| Blayne Curtis | Barclays | Raises | Overweight | $155.00 | $145.00 |
| Joe Quatrochi | Wells Fargo | Raises | Overweight | $162.00 | $155.00 |
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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.
About ARM Holdings
Arm Holdings is the intellectual property owner and developer of the ARM architecture, 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 allow 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: Delving into Financials
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's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 19.3%. This signifies a substantial 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: ARM Holdings's net margin excels beyond industry benchmarks, reaching 25.64%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.05%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): ARM Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 3.04%, the company may face hurdles in generating optimal 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.
How Are Analyst Ratings Determined?
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.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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