Unveiling 6 Analyst Insights On ARM Holdings

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ARM Holdings ARM has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 2 2 0 0
Last 30D 0 1 0 0 0
1M Ago 2 0 1 0 0
2M Ago 0 1 0 0 0
3M Ago 0 0 1 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $77.5, a high estimate of $110.00, and a low estimate of $55.00. This upward trend is evident, with the current average reflecting a 8.77% increase from the previous average price target of $71.25.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive ARM Holdings. The following summary 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
John Vinh Keybanc Raises Overweight $75.00 $65.00
Vijay Rakesh Mizuho Raises Buy $85.00 $75.00
Hans Mosesmann Rosenblatt Raises Buy $110.00 $85.00
Ross Seymore Deutsche Bank Raises Hold $70.00 $60.00
Gary Mobley Wells Fargo Announces Overweight $70.00 -
Lee Simpson Morgan Stanley Announces Equal-Weight $55.00 -

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ARM Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of ARM Holdings compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for ARM Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of ARM Holdings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Unraveling the Financial Story of ARM Holdings

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, ARM Holdings showcased positive performance, achieving a revenue growth rate of 27.94% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: ARM Holdings's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -13.65%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -2.45%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): ARM Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.63%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: ARM Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

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.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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