Ratings for ARM Holdings ARM were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 5 | 1 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 0 | 0 | 0 |
| 3M Ago | 2 | 3 | 1 | 1 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $151.5, a high estimate of $180.00, and a low estimate of $100.00. This current average reflects an increase of 12.01% from the previous average price target of $135.25.
Breaking Down Analyst Ratings: A Detailed Examination
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 |
|---|---|---|---|---|---|
| Joe Quatrochi | Wells Fargo | Raises | Overweight | $162.00 | $155.00 |
| Timothy Arcuri | UBS | Announces | Buy | $160.00 | - |
| Joe Quatrochi | Wells Fargo | Announces | Overweight | $155.00 | - |
| Ananda Baruah | Loop Capital | Raises | Buy | $180.00 | $130.00 |
| Harlan Sur | JP Morgan | Raises | Overweight | $160.00 | $140.00 |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $159.00 | $144.00 |
| Chris Rolland | Susquehanna | Raises | Neutral | $118.00 | $115.00 |
| Blayne Curtis | Barclays | Raises | Overweight | $145.00 | $125.00 |
| Mark Lipacis | Evercore ISI Group | Raises | Outperform | $176.00 | $173.00 |
| Sara Russo | Bernstein | Maintains | Underperform | $100.00 | $100.00 |
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: 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 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.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of ARM Holdings's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on ARM Holdings analyst ratings.
Delving into ARM Holdings's Background
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.
Understanding the Numbers: ARM Holdings's Finances
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 30 September, 2024, the company achieved an impressive revenue growth rate of 4.71%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: ARM Holdings's net margin excels beyond industry benchmarks, reaching 12.68%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): ARM Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.83%, the company may face hurdles in generating optimal returns for shareholders.
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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.04.
The Core of Analyst Ratings: What Every Investor Should Know
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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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