11 analysts have expressed a variety of opinions on ARM Holdings ARM over the past quarter, offering a diverse set of opinions from bullish to bearish.
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 | 4 | 4 | 2 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 2 | 1 | 1 | 0 |
| 3M Ago | 1 | 2 | 1 | 0 | 0 |
Analysts have set 12-month price targets for ARM Holdings, revealing an average target of $130.82, a high estimate of $180.00, and a low estimate of $85.00. This upward trend is apparent, with the current average reflecting a 10.24% increase from the previous average price target of $118.67.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of ARM Holdings among financial experts is revealed through an in-depth exploration 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 |
|---|---|---|---|---|---|
| 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 |
| Hans Mosesmann | Rosenblatt | Maintains | Buy | $180.00 | $180.00 |
| Gary Mobley | Wells Fargo | Raises | Overweight | $115.00 | $100.00 |
| David O'Connor | Exane BNP Paribas | Announces | Neutral | $100.00 | - |
| Mark Lipacis | Evercore ISI Group | Announces | Outperform | $156.00 | - |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $108.00 | $95.00 |
| John Vinh | Keybanc | Raises | Overweight | $135.00 | $120.00 |
| Chris Rolland | Susquehanna | Maintains | Neutral | $85.00 | $85.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to ARM Holdings. This offers insight into 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 gauge the dynamics of price targets, providing 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.
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.
Unraveling the Financial Story of ARM Holdings
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 31 March, 2024, the company achieved a revenue growth rate of approximately 46.6%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: ARM Holdings's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 24.14%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.35%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): ARM Holdings's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.98% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: ARM Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: What Are They?
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.
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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