Arm Holdings Surpasses Analyst Target: What’s Next for Investors?
In recent trading, shares of Arm Holdings plc (Symbol: ARM) have crossed above the average analyst 12-month target price of $151.12, changing hands for $151.91 per share. When a stock hits an analyst’s target price, the analyst usually faces two choices: either downgrade the stock based on its current valuation or raise the target price. The decision may also hinge on recent developments within the company that could justify a higher price.
Understanding Analyst Target Variations
Within the Zacks coverage universe, 24 different analysts have contributed to the average target for Arm Holdings plc. However, this average figure is not all-encompassing; there are analysts with varying opinions. Some set targets as low as $80.00, while one analyst has a lofty target of $195.00. The standard deviation among these predictions is $30.278, indicating differing views on the stock’s future.
The Collective Wisdom of Analysts
The appeal of analyzing the average ARM price target lies in the “wisdom of crowds” concept, reflecting the collective insights of multiple analysts rather than relying on a single perspective. As ARM shares have moved above the average target price of $151.12 per share, investors are prompted to reassess their positions. They must consider whether $151.12 is merely a stepping stone towards even higher targets or if the valuation has become too stretched, prompting them to rethink their investment strategy. Below, a table outlines current perspectives from analysts covering Arm Holdings plc:
| Recent ARM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 18 | 16 | 16 | 15 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 8 | 8 | 9 | 8 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 0 | 0 |
| Average rating: | 1.75 | 1.81 | 1.73 | 1.71 |
The average rating displayed in the table ranges from 1 to 5, with 1 representing a Strong Buy and 5 a Strong Sell. This information is based on data sourced from Zacks Investment Research via Quandl.com. To access the most recent Zacks research report on ARM at no cost, visit their site.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
