ARM - Arm Holdings plc. | StockAlert.pro

Stock Details

Arm Holdings plc. (ARM), a prominent company in the manufacturing sector within the semiconductors & related devices industry, is based in USA and primarily trades on the NASDAQ.Currently, the stock is trading at $138.05. Over the past 52 weeks, it has ranged between $80.00 and $188.75. This places the current price at 73.1% of its 52-week high and 72.6% above its 52-week low. Recent trading volume was recorded at 1,444. The 14-day Relative Strength Index (RSI) stands at 54.74, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $115.48 by 19.54%. Similarly, it is above its 200-day moving average of $133.85 by 3.14%. The MACD histogram is -0.97, indicating bearish momentum (MACD Line: 3.37, Signal Line: 4.34).

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

166.05

Above market average

Forward P/E

67.11

Earnings expected to grow

PEG Ratio

1.36

Reasonably valued

Price to Book

19.29

EV/EBITDA

127.66

EPS (TTM)

$0.75

Price to Sales

32.92

Is ARM's P/E ratio considered high or low?

Arm Holdings plc.'s current P/E ratio is 166.05, which is above the market average. This typically suggests investors expect higher future growth, or it could mean the stock is relatively expensive compared to its current earnings.

How does ARM's Forward P/E compare to its current P/E?

Arm Holdings plc.'s current P/E is 166.05 and its Forward P/E is 67.11. The lower Forward P/E suggests analysts expect earnings to grow in the coming year, potentially making the stock more attractively valued based on future earnings.

What does ARM's PEG ratio tell investors?

Arm Holdings plc.'s PEG ratio is 1.36. A PEG ratio between 1.0 and 2.0 is generally considered to indicate fair value relative to expected growth.

How volatile is ARM compared to the overall market?

Beta data is not available for this stock at the moment.

Performance & Growth

Profit Margin

19.80%

Operating Margin

33.00%

Return on Equity

13.10%

Return on Assets

6.16%

Revenue Growth (YoY)

33.70%

Earnings Growth (YoY)

-4.10%

How profitable is ARM compared to its industry peers?

Arm Holdings plc. has a profit margin of 19.80%. This is a strong profit margin that's typically above average for most industries. It means the company is keeping $19.80 of profit from every $100 in sales. Profit margins vary by industry, and SEMICONDUCTORS & RELATED DEVICES companies typically need to be evaluated against their specific sector benchmarks.

What do ARM's ROE and ROA figures tell investors?

Arm Holdings plc. has a Return on Equity (ROE) of 13.10% and a Return on Assets (ROA) of 6.16%. The ROE is moderate, showing reasonable efficiency in utilizing shareholders' capital. The ROA is healthy, suggesting management is effectively using company assets to generate earnings. The relatively balanced ROE and ROA suggest the company isn't overly reliant on debt to boost returns.

Is ARM growing faster or slower than in previous periods?

Arm Holdings plc.'s year-over-year quarterly revenue growth is 33.70%. This represents robust revenue growth significantly above market averages. Meanwhile, earnings growth is -4.10% year-over-year. Earnings are growing slower than revenue, which might indicate increasing costs or investments for future growth. The company is growing its top line while earnings are declining, which could indicate margin pressure or significant investments.

What does ARM's operating margin tell us about its business model?

Arm Holdings plc.'s operating margin is 33.00%. This is an excellent operating margin that indicates the company has strong pricing power, efficient operations, or both. It suggests a robust business model with good cost control. Operating margins vary widely by industry, and in the semiconductors & related devices sector, this margin should be evaluated relative to industry peers.

Company Size & Market

Market Cap

$131.92B

Shares Outstanding

1.06B

Book Value/Share

$6.47

Asset Type

Common Stock

What does ARM's market capitalization tell investors?

Arm Holdings plc.'s market capitalization is $131.92B, which makes it a large-cap company. Large-caps are generally considered more stable investments with established business models and often pay regular dividends. Within the semiconductors & related devices industry, this market cap places Arm Holdings plc. among the largest players in the sector.

What's the significance of ARM's book value per share?

Arm Holdings plc.'s book value per share is $6.47, while its current market price is $138.05. This gives a price-to-book (P/B) ratio of 21.34. This relatively high P/B ratio indicates investors are willing to pay a significant premium over the accounting value of the company's equity, typically due to strong growth prospects, high returns on equity, or valuable intangible assets not fully reflected on the balance sheet. In the semiconductors & related devices industry, this P/B ratio should be compared to industry peers for context.

How does the number of outstanding shares affect ARM investors?

Arm Holdings plc. has 1.06B outstanding shares. The number of outstanding shares directly affects metrics like earnings per share (EPS) and can be influenced by corporate actions such as stock splits, buybacks, or new share issuances. With a market cap of $131.92B, each share represents ownership of approximately $124.54 of the company's total value. When companies reduce their outstanding shares through buyback programs, this can increase EPS and potentially support higher share prices, assuming other factors remain constant. Conversely, when new shares are issued, this can dilute existing shareholders' ownership stakes.

Analyst Ratings

Analyst Target Price

$131.81

4.52% downside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How should I interpret analysts' recommendations for ARM?

For Arm Holdings plc., analysts have provided the following recommendations: 5 Strong Buy, 17 Buy, 14 Hold, 2 Sell, 2 Strong Sell. Analyst recommendations reflect professional opinions about a stock's potential performance, but they should be just one factor in your investment decisions. Each analyst may use different methodologies and timeframes for their assessments. Overall, analysts currently have a positive view on this stock.

What does the analyst target price mean for ARM?

The consensus analyst target price for Arm Holdings plc. is $131.81, compared to its current price of $138.05. This represents a potential downside of 4.52%. Analyst target prices typically reflect where professionals expect the stock price to be in 12 months. This consensus target is derived from individual price targets set by various analysts covering the stock, and it may be updated as market conditions change or as new information becomes available. Keep in mind that while target prices provide insight into professional expectations, they are not guarantees, and actual price performance can vary significantly from these targets.

How accurate are analyst forecasts for stocks like ARM?

Analyst forecasts, while informative, have inherent limitations in their accuracy. Studies have shown that analysts' predictions can be influenced by various biases, including optimism bias (tendency to be overly positive) and herding behavior (following other analysts' opinions). In the semiconductors & related devices industry, forecasts may be particularly challenging due to factors like changing market conditions, competitive dynamics, regulatory changes, and macroeconomic shifts.

Historically, analysts have been more accurate when forecasting:

Stable, mature companies with predictable earnings
Near-term results rather than long-term performance
Companies with transparent business models

Consider analyst forecasts as one tool among many in your investment research, and evaluate them alongside other metrics, industry trends, and your own assessment of the company's fundamentals and market position.

Fundamentals last updated: Jun 2, 2025, 08:18 AM

Technical Indicators

RSI (14-day)

54.74

Neutral

50-Day Moving Average

$115.48

19.54% above MA-50

200-Day Moving Average

$133.85

3.14% above MA-200

MACD Line

3.37

MACD Signal

4.34

MACD Histogram

-0.97

Bearish

What does ARM's RSI value tell investors?

Arm Holdings plc.'s current Relative Strength Index (RSI) is 54.74. This indicates neutral momentum as the RSI is in the middle range. Values around 50 suggest no clear directional bias. The RSI is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100. It's used to identify overbought or oversold conditions and potential reversals.

How should I interpret ARM's moving averages?

Arm Holdings plc.'s current price of $138.05 is above both its 50-day moving average ($115.48) and its 200-day moving average ($133.85). This is typically considered bullish, indicating the stock is in an uptrend across both short and long-term timeframes. The 50-day moving average is below the 200-day moving average, forming what traders call a 'death cross,' which is generally considered a bearish signal. Moving averages smooth out price data to create a single flowing line, making it easier to identify the direction of the trend. The 50-day MA represents medium-term trend, while the 200-day MA reflects the long-term trend.

What is the MACD indicating about ARM's momentum?

For Arm Holdings plc., the MACD Line is 3.37, the Signal Line is 4.34, and the MACD Histogram is -0.97. The negative MACD histogram indicates bearish momentum, with the MACD line below the signal line. This suggests selling pressure is currently stronger than buying pressure. The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. The signal line is a 9-period EMA of the MACD line, and the histogram represents the difference between the MACD line and the signal line.

Indicators last updated: Jun 4, 2025, 07:22 AM

Arm Holdings plc. (ARM) Stock