The Goldman Sachs Group Forecasts Strong Price Appreciation for ARM (NASDAQ:ARM) Stock

ARM (NASDAQ:ARM) had its target price boosted by equities researchers at The Goldman Sachs Group from $110.00 to $125.00 in a report issued on Thursday, MarketBeat reports. The firm currently has a “sell” rating on the stock. The Goldman Sachs Group’s price target indicates a potential downside of 16.07% from the company’s previous close.

Other analysts have also recently issued reports about the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Wednesday, January 21st. Benchmark reissued a “hold” rating on shares of ARM in a report on Thursday, February 5th. Needham & Company LLC upgraded ARM from a “hold” rating to a “buy” rating and set a $200.00 price objective on the stock in a research report on Thursday, March 26th. Royal Bank Of Canada lifted their target price on ARM from $130.00 to $175.00 and gave the stock an “outperform” rating in a report on Wednesday, March 25th. Finally, KeyCorp reissued an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $172.33.

ARM Stock Down 0.6%

Shares of ARM opened at $148.93 on Thursday. ARM has a 12-month low of $95.32 and a 12-month high of $183.16. The firm has a market capitalization of $157.35 billion, a PE ratio of 198.57, a price-to-earnings-growth ratio of 6.75 and a beta of 3.33. The stock’s fifty day simple moving average is $129.80 and its 200-day simple moving average is $134.25.

ARM (NASDAQ:ARM) last released its earnings results on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, beating 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 for the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the prior year, the firm posted $0.39 earnings per share. The company’s quarterly revenue was up 26.3% on a year-over-year basis. Analysts anticipate that ARM will post 0.9 EPS for the current year.

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 21,280 shares of the stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total value of $3,157,313.60. Following the sale, the chief financial officer owned 174,706 shares in the company, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Rene A. Haas sold 7,986 shares of the stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $160.86, for a total value of $1,284,627.96. Following the completion of the sale, the chief executive officer owned 282,979 shares in the company, valued at $45,520,001.94. This trade represents a 2.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 53,133 shares of company stock worth $8,288,586.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Rockefeller Capital Management L.P. raised its position in shares of ARM by 0.7% in the fourth quarter. Rockefeller Capital Management L.P. now owns 26,745 shares of the company’s stock worth $2,923,000 after buying an additional 173 shares in the last quarter. Fund Advisors of America Inc FL purchased a new stake in shares of ARM in the fourth quarter worth $663,000. Hsbc Holdings PLC raised its position in shares of ARM by 25.2% in the fourth quarter. Hsbc Holdings PLC now owns 92,992 shares of the company’s stock worth $10,281,000 after buying an additional 18,717 shares in the last quarter. SHP Wealth Management purchased a new stake in shares of ARM in the fourth quarter worth $69,000. Finally, Employees Provident Fund Board purchased a new stake in shares of ARM in the fourth quarter worth $120,241,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Analysts and industry pieces highlight ARM’s powerful developer‑hardware ecosystem, saying it creates a self‑reinforcing moat that supports long‑term share gains in mobile and edge compute markets. This narrative underpins investor confidence in ARM’s structural growth prospects. Read More. Read More.
• Positive Sentiment: CEO Rene Haas is publicly positioning ARM to “bet big” on AI; management commentary (video interview) emphasizes investment in AI opportunities, which supports expectations for higher long‑term revenue from AI‑related design wins. Read More.
• Positive Sentiment: FT/Reuters reporting that Rene Haas may take an expanded SoftBank role while remaining ARM CEO could be viewed favorably: closer ties to SoftBank’s AI/chip push may bring strategic capital, deal flow and influence—though execution risk exists. Read More. Read More.
• Neutral Sentiment: Morgan Stanley reiterated an “Equal Weight” rating on ARM, signaling no near‑term conviction to move the stock materially up or down absent fresh catalysts. Read More.
• Neutral Sentiment: Reported short‑interest data appears to be erroneous (shows 0 shares / NaN change), so there’s no reliable signal of a rising short squeeze or growing bearish positioning to explain price moves. (Data noise more than market signal.)
• Negative Sentiment: Goldman Sachs raised its price target to $125 from $110 but maintained a “sell” rating—leaving a target materially below the current share price and likely exerting downward pressure on sentiment because the firm still sees downside vs. the market. Read More.

ARM Company Profile

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.