In the latest quarter, 14 analysts provided ratings for ARM Holdings ARM, showcasing a mix of bullish and bearish perspectives.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 4 | 4 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 3 | 3 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 2 | 0 | 1 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for ARM Holdings, presenting an average target of $108.93, a high estimate of $180.00, and a low estimate of $70.00. This upward trend is apparent, with the current average reflecting a 37.89% increase from the previous average price target of $79.00.
Deciphering Analyst Ratings: An In-Depth Analysis
A clear picture of ARM Holdings's perception among financial experts is painted 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 |
|---|---|---|---|---|---|
| Vijay Rakesh | Mizuho | Raises | Buy | $160.00 | $100.00 |
| Pierre Ferragu | New Street Research | Maintains | Neutral | $110.00 | $110.00 |
| Hans Mosesmann | Rosenblatt | Raises | Buy | $180.00 | $140.00 |
| Louis Miscioscia | Daiwa Capital | Raises | Neutral | $130.00 | $63.00 |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $95.00 | $65.00 |
| Blayne Curtis | Barclays | Raises | Overweight | $105.00 | $65.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $100.00 | $85.00 |
| Chris Rolland | Susquehanna | Raises | Neutral | $85.00 | $48.00 |
| Harlan Sur | JP Morgan | Raises | Overweight | $100.00 | $70.00 |
| John Vinh | Keybanc | Raises | Overweight | $120.00 | $75.00 |
| John Vinh | Keybanc | Raises | Overweight | $75.00 | $65.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $85.00 | $75.00 |
| Hans Mosesmann | Rosenblatt | Raises | Buy | $110.00 | $85.00 |
| Ross Seymore | Deutsche Bank | Raises | Hold | $70.00 | $60.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ARM Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.
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.
Discovering ARM Holdings: A Closer Look
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.
Understanding the Numbers: ARM Holdings's Finances
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by 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. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: ARM Holdings's net margin lags behind industry averages, suggesting 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): ARM Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.78%, the company may encounter challenges in delivering 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 1.25%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: ARM Holdings's debt-to-equity ratio is below the industry average at 0.05, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: Simplified
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
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.
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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