Analysts' ratings for ARM Holdings ( ARM ) over the last quarter vary from bullish to bearish, as provided by 3 analysts.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $145.33, with a high estimate of $176.00 and a low estimate of $100.00. This upward trend is apparent, with the current average reflecting a 6.47% increase from the previous average price target of $136.50.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive ARM Holdings ( ARM ) is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to ARM Holdings ( ARM ). This insight gives a snapshot of analysts' perspectives on the current state of the company.

Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of ARM Holdings ( ARM ) compared to the broader market.

Price Targets: Analysts provide insights into price targets, offering estimates for the future value of ARM Holdings's ( ARM ) stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of ARM Holdings's ( ARM ) market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on ARM Holdings ( ARM ) analyst ratings.

About ARM Holdings

Arm Holdings ( ARM ) 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. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Breaking Down ARM Holdings's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: ARM Holdings's ( ARM ) remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 39.11%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: ARM Holdings's ( ARM ) net margin excels beyond industry benchmarks, reaching 23.75%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): ARM Holdings's ( ARM ) ROE stands out, surpassing industry averages. With an impressive ROE of 4.07%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): ARM Holdings's ( ARM ) ROA excels beyond industry benchmarks, reaching 2.82%. This signifies efficient management of assets and strong financial health.

Debt Management: ARM Holdings's ( ARM ) debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.04.

Analyst Ratings: Simplified

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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