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 $163.17. Over the past 52 weeks, it has ranged between $80.00 and $182.88. This places the current price at 89.2% of its 52-week high and 104.0% above its 52-week low. Recent trading volume was recorded at 3,144,702. 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 41.30%. Similarly, it is above its 200-day moving average of $133.85 by 21.91%. The MACD histogram is -0.97, indicating bearish momentum (MACD Line: 3.37, Signal Line: 4.34). The International Securities Identification Number (ISIN) for this stock is US0420682058.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

223.59

Above market average

Forward P/E

90.09

Earnings expected to grow

PEG Ratio

2.87

Potentially overvalued

Price to Book

25.63

EV/EBITDA

170.41

EPS (TTM)

$0.74

Price to Sales

43.74

How is ARM valued relative to its earnings and growth?

Arm Holdings plc. trades at a P/E ratio of 223.59, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 90.09 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.87 indicates a premium valuation even accounting for growth.

What is ARM's risk profile compared to the market?

Risk profile data is not available for this stock.

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 and efficient is ARM's business model?

Arm Holdings plc. achieves a profit margin of 19.80%, meaning it retains $19.80 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 33.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.10% and ROA at 6.16%, the company achieves moderate returns on invested capital.

What are ARM's recent growth trends?

Arm Holdings plc.'s revenue grew by 33.70% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings decreased by 4.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SEMICONDUCTORS & RELATED DEVICES industry averages for proper context.

Company Size & Market

Shares Outstanding

1.06B

Book Value/Share

$6.47

Asset Type

Common Stock

What is ARM's market capitalization and position?

Arm Holdings plc. has a market capitalization of $175.27B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.06B shares outstanding, the company's ownership is widely distributed. As a major player in the SEMICONDUCTORS & RELATED DEVICES industry, it competes with other firms in this sector.

How does ARM's price compare to its book value?

Arm Holdings plc.'s book value per share is $6.47, while the current stock price is $163.17, resulting in a price-to-book (P/B) ratio of 25.22. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$132.31

18.91% downside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

How reliable are analyst predictions for ARM?

40 analysts cover ARM with 55% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $132.31 implies -18.9% downside, but targets are often adjusted to follow price moves rather than predict them.

What is the Wall Street consensus on ARM?

Current analyst recommendations:5 Strong Buy, 17 Buy, 14 Hold, 3 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 02:42 AM

Technical Indicators

RSI (14-day)

54.74

Neutral

50-Day Moving Average

$115.48

41.30% above MA-50

200-Day Moving Average

$133.85

21.91% above MA-200

MACD Line

3.37

MACD Signal

4.34

MACD Histogram

-0.97

Bearish

What does ARM's RSI value tell investors?

The RSI (Relative Strength Index) for ARM is currently 54.74, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

How should traders interpret ARM's MACD and moving average crossovers?

MACD analysis shows the MACD line at 3.37 below the signal line at 4.34, with histogram at -0.97. This bearish crossover indicates downward pressure. The 50-day MA ($115.48) is below the 200-day MA ($133.85), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

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

Arm Holdings plc. (ARM) Stock