Wells Fargo & Company Cuts ARM (NASDAQ:ARM) Price Target to $150.00

ARM (NASDAQ:ARM) had its price target decreased by Wells Fargo & Company from $160.00 to $150.00 in a report published on Thursday,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the stock.

ARM has been the topic of a number of other reports. UBS Group cut their target price on shares of ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research note on Thursday. Oddo Bhf set a $170.00 price objective on shares of ARM in a research report on Monday, January 5th. Evercore reduced their price objective on shares of ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a report on Thursday. Citigroup downgraded shares of ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Finally, The Goldman Sachs Group cut ARM from a “neutral” rating to a “sell” rating and cut their price target for the company from $160.00 to $120.00 in a research note on Monday, December 15th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $160.81.

ARM Trading Up 11.6%

ARM stock opened at $123.70 on Thursday. The firm has a market capitalization of $130.69 billion, a P/E ratio of 164.93, a P/E/G ratio of 7.41 and a beta of 4.35. ARM has a twelve month low of $80.00 and a twelve month high of $183.16. The stock’s fifty day simple moving average is $117.14 and its 200-day simple moving average is $137.94.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, February 4th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the previous year, the firm posted $0.39 EPS. ARM’s revenue for the quarter was up 26.3% on a year-over-year basis. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Sell-side analysts predict that ARM will post 0.9 earnings per share for the current year.

Institutional Trading of ARM

A number of large investors have recently bought and sold shares of ARM. GAMMA Investing LLC increased its stake in ARM by 126.0% in the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after purchasing an additional 97 shares during the period. Grey Fox Wealth Advisors LLC purchased a new position in shares of ARM during the third quarter worth about $28,000. Huntington National Bank acquired a new position in ARM in the 2nd quarter valued at about $30,000. Navalign LLC purchased a new stake in ARM during the 4th quarter valued at approximately $33,000. Finally, FWL Investment Management LLC purchased a new stake in ARM during the 2nd quarter valued at approximately $34,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.