Throughout the last three months, 12 analysts have evaluated ARM Holdings (NASDAQ:ARM), offering a diverse set of opinions from bullish to bearish.
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 | 4 | 8 | 0 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 3 | 6 | 0 | 0 | 0 |
Analysts have recently evaluated ARM Holdings and provided 12-month price targets. The average target is $179.42, accompanied by a high estimate of $210.00 and a low estimate of $150.00. Marking an increase of 10.45%, the current average surpasses the previous average price target of $162.45.
Analyzing Analyst Ratings: A Detailed Breakdown
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 |
|---|---|---|---|---|---|
| Lee Simpson | Morgan Stanley | Lowers | Overweight | $171.00 | $180.00 |
| Mark Lipacis | Evercore ISI Group | Raises | Outperform | $178.00 | $173.00 |
| Jay Goldberg | Seaport Global | Announces | Buy | $150.00 | - |
| Lee Simpson | Morgan Stanley | Lowers | Overweight | $180.00 | $194.00 |
| Srini Pajjuri | Raymond James | Raises | Outperform | $165.00 | $140.00 |
| Timothy Arcuri | UBS | Lowers | Buy | $175.00 | $185.00 |
| John Vinh | Keybanc | Raises | Overweight | $190.00 | $175.00 |
| Kevin Cassidy | Rosenblatt | Maintains | Buy | $180.00 | $180.00 |
| Lee Simpson | Morgan Stanley | Raises | Overweight | $194.00 | $150.00 |
| Joe Quatrochi | Wells Fargo | Raises | Overweight | $175.00 | $145.00 |
| Timothy Arcuri | UBS | Raises | Buy | $185.00 | $155.00 |
| David O'Connor | Exane BNP Paribas | Raises | Outperform | $210.00 | $110.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ARM Holdings. This information offers a snapshot of how analysts perceive 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.
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.
Discovering ARM Holdings: A Closer Look
Arm Holdings is the IP 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.
Unraveling the Financial Story of ARM Holdings
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 3M is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 12.14%. 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.35%, the company showcases strong profitability and 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 1.88%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): ARM Holdings's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.42%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: ARM Holdings's debt-to-equity ratio is below the industry average at 0.06, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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