ARM (NASDAQ:ARM) Trading Down 12.8% on Insider Selling

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 12.8% on Friday after an insider sold shares in the company. The stock traded as low as $337.55 and last traded at $342.93. 14,690,246 shares changed hands during trading, an increase of 71% from the average session volume of 8,594,021 shares. The stock had previously closed at $393.44.

Specifically, CAO Laura Kathleen Bartels sold 11,306 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the transaction, the chief accounting officer owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the transaction, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This trade represents a 24.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other ARM news, insider William Abbey sold 4,200 shares of ARM stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $343.81, for a total value of $1,444,002.00. Following the completion of the transaction, the insider directly owned 27,129 shares of the company’s stock, valued at $9,327,221.49. The trade was a 13.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ARM shares. Mizuho increased their price target on shares of ARM from $360.00 to $425.00 and gave the stock an “outperform” rating in a research report on Monday. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a research note on Thursday, May 7th. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and increased their target price for the stock from $90.00 to $205.00 in a report on Friday, March 20th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating in a research note on Thursday, February 5th. Finally, Benchmark reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, February 5th. Twenty research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, ARM presently has a consensus rating of “Moderate Buy” and an average price target of $226.92.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm is being linked to Nvidia’s expanded AI PC and data-center push, which supports the case that demand for Arm’s architecture could keep growing and lift future licensing and royalty revenue. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Reports that Arm’s AI chip ambitions may be advancing faster than expected reinforce optimism that the company’s AI opportunity could scale sooner than Wall Street had assumed. Arm’s $15 Billion AI Chip Target May Arrive Early
• Positive Sentiment: Arm said major customers such as ByteDance and Oracle are using its AI data-center CPUs, adding credibility to its push into AI infrastructure. Arm names ByteDance and Oracle as users of its AI data centre CPUs
• Neutral Sentiment: Recent insider sales, including trades by William Abbey and CAO Laura Kathleen Bartels, may make some investors cautious, but they do not by themselves signal a change in Arm’s operating outlook. SEC insider filing SEC insider filing
• Neutral Sentiment: Arm’s stock has also attracted attention because of its very large recent rally and rich valuation, which leaves it vulnerable to volatility if AI enthusiasm cools. ARM Shares Surge 270% in 2026: Buy, Hold, or Wait for a Pullback?
• Negative Sentiment: The broader chip sector is under pressure after Broadcom’s disappointing earnings, and that weakness is weighing on semiconductor names including Arm. 2 Chip Stocks Extending Slide After Broadcom Earnings Bust
• Negative Sentiment: Barron’s highlighted that Arm insiders sold millions of dollars of stock ahead of the latest rally, which can add to investor concern about insiders cashing out near highs. Arm Insiders Sold $25.6 Million in Stock. They Missed a Historic Rally.

ARM Stock Down 12.8%

The company’s fifty day moving average is $220.92 and its two-hundred day moving average is $156.68. The stock has a market cap of $362.31 billion, a price-to-earnings ratio of 408.25, a PEG ratio of 14.96 and a beta of 3.78.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The company had revenue of $1.49 billion for the quarter. Sell-side analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Hedge Funds Weigh In On ARM

Several large investors have recently bought and sold shares of the business. Parallel Advisors LLC increased its holdings in ARM by 53.3% in the first quarter. Parallel Advisors LLC now owns 3,142 shares of the company’s stock valued at $475,000 after buying an additional 1,093 shares during the last quarter. GKV Capital Management Co. Inc. acquired a new position in shares of ARM during the 1st quarter worth about $106,000. CTC Alternative Strategies Ltd. acquired a new position in shares of ARM during the 1st quarter worth about $2,322,000. BankChampaign National Association purchased a new position in shares of ARM in the 1st quarter valued at about $510,000. Finally, Groupe la Francaise raised its position in shares of ARM by 62.9% during the 1st quarter. Groupe la Francaise now owns 41,953 shares of the company’s stock worth $6,309,000 after acquiring an additional 16,201 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.