Arm Holdings Surpasses Analyst Price Target: What’s Next?
In recent trading, shares of Arm Holdings plc (Symbol: ARM) have crossed above the average analyst 12-month target price of $151.42, changing hands for $155.20/share. When a stock reaches a target set by an analyst, they typically have two options: downgrade on valuation or raise their target price. The response may also depend on the underlying business developments driving the stock price higher — if the company is on an upward trajectory, a target price increase could be warranted.
There are 24 different analyst targets contributing to that average for Arm Holdings plc, but the average is just a mathematical midpoint. Some analysts set lower targets, with one predicting a price of $80.00, while another is optimistic with a target as high as $195.00. The standard deviation stands at $30.351, indicating varying levels of confidence in the stock’s future performance.
The purpose of examining the average ARM price target is to harness the “wisdom of crowds.” This average reflects the collective insight from various analysts rather than relying on a single expert’s opinion. With ARM trading above the average target price of $151.42/share, investors face an important decision: Is $151.42 merely a stepping stone to even higher targets, or has the valuation stretched too far, necessitating a reconsideration of their investment? Below is a table illustrating the current thoughts from analysts covering Arm Holdings plc:
Recent ARM Analyst Ratings Breakdown | ||||
---|---|---|---|---|
» | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
Strong buy ratings: | 18 | 18 | 16 | 16 |
Buy ratings: | 1 | 1 | 1 | 1 |
Hold ratings: | 8 | 8 | 8 | 9 |
Sell ratings: | 0 | 0 | 0 | 0 |
Strong sell ratings: | 1 | 1 | 1 | 0 |
Average rating: | 1.75 | 1.75 | 1.81 | 1.73 |
The average rating in the table uses a scale of 1 to 5, where 1 is a Strong Buy and 5 is a Strong Sell. This analysis incorporates data from Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.