Unveiling 7 Analyst Insights On ARM Holdings

In the preceding three months, 7 analysts have released ratings for ARM Holdings ARM, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated ARM Holdings and provided 12-month price targets. The average target is $145.43, accompanied by a high estimate of $176.00 and a low estimate of $100.00. Witnessing a positive shift, the current average has risen by 9.49% from the previous average price target of $132.83.

Investigating Analyst Ratings: An Elaborate Study

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.

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: 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: 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of ARM Holdings's market standing. Stay informed and make data-driven decisions with 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.

Financial Insights: ARM Holdings

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: ARM Holdings displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 39.11%. This indicates a notable 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 is impressive, surpassing industry averages. With a net margin of 23.75%, the company demonstrates strong profitability and effective cost management.

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): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.82%, the company showcases effective utilization of assets.

Debt Management: ARM Holdings's debt-to-equity ratio is below the industry average at 0.04, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a 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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This article was generated by Benzinga's automated content engine and reviewed by an editor.