ARM Stock Price Rebounds After Dipping Below IPO Price
The shares of Arm Holdings (NASDAQ: ARM) are facing headwinds after a successful IPO earlier this month. Due to a lot of hype surrounding the ARM IPO, the shares of the British chipmaker surged by 22.6% after the firm went public. However, bulls failed to gain strength above the $69 level, and ARM stock price plunged 26.6% from that level.
This week, Arm stock is showing a good recovery. The stock is up 4.95% at press time amid a stock market rebound. The benchmark of tech stocks, the NASDAQ 100, showed a 47-point gain, while the S&P500 was also up by 0.2% during the first trading session of the week.
Analysts Maintain Neutral Rating For Arm Holding
Susquehanna researchers Christopher Rolland and Mehdi Hosseini believe that Arm stock price has reached its maximum value. The analysts gave a natural rating for the stock and a $48 price target. They also warned that the stock of the chipmaker might plunge further from the current level.
According to FactSet, out of the 5 brokers that cover the Arm Holdings, only 1 of the brokers is bullish right now. 3 of the brokers, including Susquehanna, were neutral, while 1 of them was bearish. The average price target for the AI stock is $51.
Arm Stock Recovers After A Steep Decline
As I predicted in my previous forecast, ARM broke below $58 and met my price target of $51, which was the initial offering price for the chipmaker’s stock. The chart below also shows the price trading 23.6% below its all-time high of $69, which was made on the very next day of its NASDAQ listing.
It is critical for the price to hold the $51 level. A break below this level will flip the Arm price prediction bearish. To boost investor sentiment, the price needs to break above the major resistance level of $58, as mentioned in chart above.