ARM’s (ARM) Equal Weight Rating Reaffirmed at Morgan Stanley

Morgan Stanley reiterated their equal weight rating on shares of ARM (NASDAQ:ARM) in a research note released on Tuesday morning, Marketbeat.com reports. Morgan Stanley currently has a $150.00 target price on the stock, up from their prior target price of $135.00.

Other research analysts also recently issued reports about the company. Oddo Bhf set a $170.00 price target on ARM in a research note on Monday, January 5th. Citigroup downgraded ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. 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 research note on Wednesday, March 25th. Jefferies Financial Group set a $170.00 target price on ARM in a research note on Thursday, February 5th. Finally, KeyCorp reiterated an “overweight” rating on shares of ARM in a research note on Thursday, February 5th. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $172.13.

ARM Stock Down 3.3%

ARM stock opened at $143.86 on Tuesday. The business has a 50 day moving average price of $127.33 and a two-hundred day moving average price of $134.01. The company has a market cap of $151.99 billion, a price-to-earnings ratio of 191.81, a P/E/G ratio of 6.65 and a beta of 3.33. ARM has a twelve month low of $84.12 and a twelve month high of $183.16.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The firm had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The business’s revenue was up 26.3% compared to the same quarter last year. During the same period last year, the company earned $0.39 earnings per share. On average, equities research analysts anticipate that ARM will post 0.9 EPS for the current fiscal year.

Insider Activity at ARM

In related news, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the sale, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. This trade represents a 7.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred 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 directly owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 53,133 shares of company stock valued at $8,288,586 over the last quarter.

Institutional Trading of ARM

Several hedge funds have recently added to or reduced their stakes in the company. Compound Planning Inc. lifted its holdings in ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after purchasing an additional 69 shares during the last quarter. Ritholtz Wealth Management grew its stake in shares of ARM by 3.0% in the third quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock valued at $345,000 after acquiring an additional 70 shares in the last quarter. Rathbones Group PLC grew its stake in shares of ARM by 0.7% in the third quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after acquiring an additional 70 shares in the last quarter. Nwam LLC grew its stake in shares of ARM by 4.3% in the third quarter. Nwam LLC now owns 1,711 shares of the company’s stock valued at $242,000 after acquiring an additional 71 shares in the last quarter. Finally, Kovack Advisors Inc. grew its stake in shares of ARM by 2.0% in the third quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock valued at $510,000 after acquiring an additional 72 shares in the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Analyst write-up argues agentic (multi‑agent) AI will shift the compute bottleneck from accelerators to CPUs, potentially multiplying token generation and driving meaningful revenue from an “AGI CPU” (Arm estimates up to $1B revenue in fiscal 2027–28). Arm Stock Could Win As Agentic AI Shifts The Bottleneck To CPUs
• Positive Sentiment: Further bullish analysis highlights a growing “CPU bottleneck” thesis, stronger royalty mix and adoption of Compute Subsystems (21 CSS licenses), with royalty revenue up 27%—signs Arm can capture more silicon economics. Arm Holdings: The CPU Bottleneck Thesis Is Getting Harder To Ignore
• Positive Sentiment: Mizuho raised its price target sharply to $230 and kept an Outperform rating—a sizable bullish analyst signal that suggests material upside if Arm’s CPU/AI adoption continues. Mizuho Raises PT to $230
• Positive Sentiment: Industry research notes major hyperscalers (Google, AWS, Microsoft, Meta) are moving to Arm-based designs for cost/efficiency, reinforcing a multi-year secular tailwind for Arm’s architecture in cloud AI infrastructure. Every Major Hyperscaler Is Moving To Arm
• Neutral Sentiment: A note highlighted that Morgan Stanley has the stock at an Equal Weight rating with a $150 target (up from $135), a mixed signal: higher target but less enthusiastic stance. Benzinga: Morgan Stanley Equal Weight / $150 PT
• Negative Sentiment: Morgan Stanley downgraded Arm from Overweight to Equal Weight, citing litigation and competitive risks tied to the company’s chipmaking pivot—this downgrade is the catalyst cited for today’s selling pressure. Arm Holdings Stock Sinks On Morgan Stanley Downgrade
• Negative Sentiment: Barron’s and other outlets explain Morgan Stanley’s downgrade as a “reality check” on execution risk around Arm’s entry into chipmaking—investors are reassessing the risk/reward after the recent rally. Barron’s: Why Morgan Stanley Downgraded
• Negative Sentiment: Market‑wide tech weakness and an oil-driven selloff pressured chip names broadly today, amplifying Arm’s pullback alongside peers like Nvidia and Apple. Nasdaq Index: Arm, Nvidia Sink as Oil Rally Hits US Stock Market
• Negative Sentiment: Additional coverage repeats that the downgrade and cautious commentary trimmed post‑rally enthusiasm, contributing to the intraday decline. Invezz: Arm Stock Falls After Morgan Stanley Reality Check

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.