Arm (ARM.US) Price Target 2026/2027: 30% Upside – Rating and Stock Analysis

227.80
Price history for Arm (ARM.US) – stock price at $227.80, October 2026
Arm stock price – price development 2026. Updated Oct 17, 2026.
Share this analysis:

Arm Price Target 2026: Analysts See 28% Upside

The average price target for Arm is $290.71. This price target represents the analysts' view of the stock price over the next 12 months. The stock may be undervalued, because the price target is higher than the current price. The stock is 27.62% below the target, which can point to potential returns within the next 12 months if the analysts' view proves right. Also consider the stock's valuation ratios such as P/E, P/S and P/B, plus the technical analysis further down the page, for the full picture.

Is Arm overvalued or undervalued?

Arm is currently undervalued with a gap of 27.6% relative to the price target.


The current price is $227.80, which places Arm in the undervalued category. The stock is considered undervalued when the price is below $261.64, and overvalued when the price exceeds $319.78.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Arm, the fair value range lies between $261.64 and $319.78.


See the full price target analysis for Arm →

Analyst Ratings for Arm stock in 2026: Buy

43 analysts cover Arm. The majority is positive, with 67.4% recommending Buy, while 27.9% recommend Hold. The average price target is $290.71, which gives an upside of 27.6% from the current price.

Consensus: Buy (4.07/5)
Strong Buy
21 (48.8%)
Buy
8 (18.6%)
Hold
12 (27.9%)
Strong Sell
2 (4.7%)
Strong Sell Sell Hold Buy Strong Buy
4.07 out of 5 based on 43 analysts

About Arm – Semiconductors

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC. Read more about the company

Key Figures for Arm

$284B Market cap
$5.2B Revenue
Semiconductors Industry
283.28 P/E
55.16 P/S
41.16 P/B
United States Listed on exchange
arm.com Website

What kind of stock is Arm?

Growth stock Quality stock

Arm is classified as a growth stock and quality stock. This means the stock combines several attractive traits, strong financial health (Piotroski 8/9).

Score Overview for Arm

💰 Value Score 3/100 (Very Low)
⭐ Quality Score 77/100 (High)
🚀 Momentum Score 33/100 (Low)
📊 Total Score 37/100

⚠️ 1 red flag identified

Our analysis has identified 1 potential risk factor in Arm that investors should be aware of.

⚠️ High short interest: 10.7% of the shares are sold short – many professional investors are betting on price declines.

📈 Valuation

Arm trades at a P/E ratio of 283.3, which is above the market average. The forward P/E is 151.5 (47% lower), which suggests the market expects rising earnings. The P/S ratio is 55.2 (high — the market pays a premium for the revenue). The P/B ratio is 41.2. The PEG ratio is 2.73 — above 2.0 suggests the stock is expensive relative to its growth rate.

💵 Profitability & Growth

Arm has a profit margin of 20.3% (excellent) and an operating margin of 7.6%. Return on equity (ROE) is 13.4% — solid return on equity. Return on assets (ROA) is 5.4%. The latest quarterly earnings grew 108.3% year over year — strong growth.

🏦 Financial Health

The Piotroski score is 8 out of 9 — excellent financial health. Altman Z2 is 8.58 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 30.6% — low debt, a solid balance sheet.

🚀 Momentum & Short Interest

Short interest is 10.69% — very high, the market is skeptical.

Insider Trading in Arm 2026: The Signal Is negative

In 2026, insiders at Arm have made 20 transactions, all of which were sales. On a net basis, insiders took $50,716,928 out of the stock. Active insiders include Child Jason, Bartels Laura Kathleen, Abbey William and others. In the short term (last 3 months), the insider signal is negative.

Short-Term Signal (3 months): Negative

Insiders have exclusively sold shares over the last 3 months.

Over the last 3 months: 0 purchases and 2 sales. A net $5,775,432 out of the stock.

Long-Term Signal (all transactions): Negative

Insiders have exclusively sold shares in the recent period. This can suggest management sees limited opportunity.

Across the last 20 transactions: 0 purchases and 20 sales. A net $50,716,928 out of the stock.

Latest sale: Child Jason sold 10,400 shares at $300.00 each on 2026-09-21.

Who is selling: Child Jason, Bartels Laura Kathleen, Abbey William, Eaton Charlotte Claire, Collins Spencer and others.

Latest Insider Trades in Arm (2026)

The table shows the last 20 reported insider transactions in Arm. Green rows are purchases, red rows are sales. The data is based on official filings.

Transaction date Name Type Number of shares Price per share ($) Total amount ($)
2026-09-21 Child Jason Sell 10,400 300 3,120,000
2026-08-27 Child Jason Sell 10,400 255 2,655,432
2026-06-02 Bartels Laura Kathleen Sell 11,306 393 4,439,866
2026-06-01 Abbey William Sell 2,644 416 1,098,635
2026-05-28 Abbey William Sell 4,200 344 1,444,002
2026-05-22 Abbey William Sell 2,300 306 703,386
2026-05-21 Eaton Charlotte Claire Sell 2,805 291 816,479
2026-05-21 Abbey William Sell 4,655 287 1,336,125
2026-05-20 Eaton Charlotte Claire Sell 3,100 252 781,975
2026-05-20 Child Jason Sell 31,920 227 7,231,157

Who is buying and selling Arm shares in 2026?

The following insiders have sold shares: Child Jason, Bartels Laura Kathleen, Abbey William, Eaton Charlotte Claire, Collins Spencer and others. In total, $50,716,928 was sold across 20 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.

Arm Short Selling 2026: 10.7% Sold Short

Very high short interest: 10.7% of the free float
Short % of free float
10.7%
Assessment
Very high short interest
Short squeeze risk
High
Data source
EODHD
Reported about twice a month

Short interest over time: Arm

0.0%7.6%15.3%
Peak 13.3% · 5/30
5/307/299/27
10.7% today (very high)Peaked at 13.3% on May 30, 2026Last 30 days: −0.8 percentage pointsMeasured over 120 days
What does the trend tell you?
Short interest is falling. It is down 0.8 percentage points over the last month and now stands at 10.7%. This is how shorting works: whoever shorts has borrowed the share and sold it, and to close the position again they must buy the share back. Falling short interest therefore means shares are being bought back in Arm right now.

Many investors watch for exactly this: short interest that has been high and starts falling back. The professionals who bet on a falling price are closing down. That is not in itself a signal about what the price will do — we cannot predict the market, and short interest is only one number among many. But it does say something about what the large players are doing.
The stock has a very high share of short selling. Between 10-20% of the freely traded shares are sold short, which points to considerable bearish sentiment. A positive earnings report or unexpectedly good news can trigger a short squeeze with sharp price gains.

What does this mean for you as an investor?
A short interest of 10.7% means that 10.7% of the freely traded shares in Arm have been borrowed and sold by investors betting on falling prices. On positive surprises (e.g. a strong earnings report), short sellers can be forced to buy back shares quickly to close their positions, which can cause a short squeeze with sharp price gains in a short time.

The next potential catalyst is the earnings report on Nov 4, 2026. With a short interest of 10.7%, the report can trigger considerable volatility.

Short interest comes from our data provider EODHD. The figure is reported about twice a month; we check it every trading day.
Short Interest Scale
0% 2% 5% 10% 20%+
Low Moderate High Very High Extreme
▲
10.7%

When Does Arm Report Earnings – Next Date: Nov 4, 2026

The next earnings report from Arm is scheduled for November 4, 2026, after the market closes. This report covers the third quarter (Q3), which ended on September 30, 2026.



Technical Analysis of Arm 2026 – Signal: Hold

Overall Technical Signal: Hold

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated October 17, 2026.

Technical analysis of Arm (ARM.US) – RSI 34, MACD negative (bearish), daily candlestick chart October 2026
Arm technical analysis – candlestick chart with RSI, MACD and volume profile. Updated Oct 17, 2026.

Trend Analysis of Arm Holdings plc American Depositary Shares

Arm Holdings plc American Depositary Shares is in a short-term downtrend. The price of $227.80 is 20.6% below the 20-day average ($286.72). Medium term, the picture is negative: the price is 15.0% below the 50-day average ($267.88). Long term, the stock is 1.9% above the 200-day average ($223.44), which confirms a long-term uptrend.

Golden Cross: The 50-day average (267.88) is above the 200-day average (223.44), which is a classic bullish signal for Arm Holdings plc American Depositary Shares.

Is Arm Holdings plc American Depositary Shares overbought or oversold?

Arm Holdings plc American Depositary Shares has an RSI of 34.5. The stock sits in the lower part of the neutral zone, which points to weak momentum without being oversold.

MACD Analysis for Arm Holdings plc American Depositary Shares

Daily MACD: MACD is negative (-8.532), which means the short-term trend is bearish (the 12-day EMA is below the 26-day EMA). MACD is below the signal line (-0.144) by 8.388, which confirms growing negative momentum in the downtrend.

Weekly MACD: MACD5 is positive (14.849), which indicates a broader bullish long-term trend. MACD5 is below the signal line (22.404) by 7.555, which suggests the long-term momentum is fading – the positive trend could come under pressure.

Overall MACD assessment: The daily and weekly MACD give conflicting signals. The long-term trend is bullish, but the short-term trend is bearish. Short-term momentum is still falling – a deeper pullback is possible.

Risk Profile for Arm Holdings plc American Depositary Shares

Arm Holdings plc American Depositary Shares has an annual standard deviation of 79.4%, which classifies the stock as Extremely speculative. Only risk-tolerant investors should consider this stock, because the price swings can be very large.

Overall Technical Conclusion for Arm Holdings plc American Depositary Shares

Trend: Neutral/mixed.

MACD trend (zero line): Daily bearish (-8.532). Weekly bullish (14.849).

MACD momentum (signal): Daily falling. Weekly falling.

RSI: 34.5 – neutral.

Technical signal: Hold

The signals are mixed – trend and MACD point in different directions. Wait until MACD crosses the zero line in the direction of the trend before acting.

Frequently Asked Questions About Arm stock in 2026

Should you buy Arm stock now?
The technical signal for Arm is currently Hold. Arm trades at $227.80 as of Oct 17, 2026. The technical analysis shows the following: MACD is negative (bearish trend) at -8.532 with falling momentum (signal: -0.144); RSI is at 34.5 (neutral zone); the stock is in a short-term downtrend (price below the 20-day average); the analyst price target of $290.71 points to 27.6% upside. This is a technical observation based on current data, not investment advice.
What is the price target for Arm stock?
The average analyst price target for Arm is $290.71. The current price is $227.80, which gives an upside of 27.6%. Based on this, the stock is considered undervalued. The fair value range (±10% of the price target) is between $261.64 and $319.78.
Is Arm a dividend stock?
No, Arm does not currently pay a dividend to shareholders. The company reinvests its profits in growth instead of paying dividends.
What is the risk of Arm stock?
Arm is rated as a stock in the risk category Extremely speculative. the annual standard deviation is 79.4%, which classifies the stock as Extremely speculative.
Is Arm overvalued?
No, Arm is considered undervalued based on the analyst price target (27.6% upside). Arm has the following valuation ratios: a P/E ratio of 283.3 (highly valued), a P/S ratio of 55.2, a P/B ratio of 41.2. The analyst price target suggests that the stock is undervalued by 27.6%.
Is Arm overbought?
No, Arm is not overbought. RSI is at 34.5 (neutral zone). The technical indicators show: RSI is at 34.5 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 20.6% below the 20-day average (short-term downtrend). In addition, MACD is negative with falling momentum (bearish).
When is the next Arm earnings report?
Arm reports its next earnings on November 4, 2026. The stock currently trades at $227.80. With a P/E ratio of 283.3, the market will be watching closely whether earnings meet expectations. The RSI is at 34.5, so the report can reinforce the current technical trend.
Is Arm shorted?
Yes, Arm is shorted with 10.7% of the free float sold short. This is a very high level of short selling, which points to considerable bearish sentiment. A positive earnings report or unexpectedly good news can trigger a short squeeze with sharp price gains. The figure comes from our data provider EODHD, is reported about twice a month, and we check it every trading day.
Are insiders buying Arm stock?
No, insiders are not buying Arm shares – they are net sellers. Over the last 3 months, insiders have made 0 purchases and 2 sales. On a net basis, 5,775,432 $ worth of shares were sold. Across the last 20 reported transactions, the split is 0 purchases and 20 sales, with a net 50,716,928 $ sold. Active sellers include Child Jason, Bartels Laura Kathleen, Abbey William and others. Insider selling can have several explanations (e.g. planned 10b5-1 sales, portfolio diversification or taxes), but sustained selling by several insiders is worth watching closely.
Is Arm a good stock?
Based on our total score, Arm is rated as a poor stock with a total score of 37 out of 100. The stock scores below average on value, quality and momentum – it sits at the lower end of the market. The score is made up of Value: 3/100, Quality: 77/100, Momentum: 33/100. In addition: analysts see 27.6% upside to the price target. Whether now is the time to buy is a separate question: the technical signal is Hold. Whether Arm is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Arm stock?
The outlook for Arm based on current data: the average analyst price target is $290.71 (+27.6%); the next earnings report is due on Nov 4, 2026, which can move the price; the P/E ratio is 283.3 (high – the market expects growth). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Arm stock falling?
Arm is falling right now. The technical indicators show: the price is 20.6% below the 20-day average; MACD is negative with falling momentum (bearish signal); short interest is 10.7% (high – many are betting on a decline); insiders have mostly been selling the stock recently. For the latest context, see our technical analysis and insider section above.
How high can Arm go?
The average analyst price target for Arm is $290.71, which corresponds to a potential gain of 27.6% from the current price of $227.80. The stock has traded between $100.02 and $452.70 over the last 52 weeks. The price is 49.7% below the 52-week high, which can indicate potential if the underlying fundamentals are intact. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Arm fall?
The stock has traded as low as $100.02 over the last 52 weeks — that is 56.1% below the current price of $227.80. The biggest decline (drawdown) in the same period was 77.9% from high to low. Within a year, the price typically swings about ±79.4% (standard deviation — a measure of price swings). A difficult year could therefore mean a further decline of that size. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Arm do?
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics ... The company belongs to the Technology sector, more specifically the Semiconductors industry, is headquartered in United States, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Arm as an investment.
Did Arm raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Arm. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history above.
Is Arm making money or losing money?
Yes, Arm is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 20.3% — which is excellent. The operating margin (profit before interest and taxes) is 7.6%. At a P/E ratio of 283.3, you currently pay 283.3 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Arm go bankrupt?
The bankruptcy risk of Arm is rated as low. Altman Z2 (a model for assessing financial distress) is 8.58 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 8 — which is strong. Debt relative to equity is 31% (low). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Arm have a lot of debt?
No, Arm has low debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 31%. For the technology sector, anything below 60% counts as low debt. Tech companies are usually asset-light and need little borrowed capital — anything below 60% counts as low in this sector. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector.

Other Stocks in Technology

Compare Arm with other stocks in the technology sector. Click a stock to see its technical analysis, insider trading and key figures.

See all 207 stocks in the Technology sector