ARM (NASDAQ:ARM) Shares Down 7.9% on Insider Selling

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 7.9% on Thursday after an insider sold shares in the company. The company traded as low as $307.57 and last traded at $306.1930. Approximately 3,883,663 shares traded hands during trading, a decline of 50% from the average session volume of 7,768,278 shares. The stock had previously closed at $332.56.

Specifically, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

ARM has been the subject of several research analyst reports. Rosenblatt Securities reduced their price target on shares of ARM from $270.00 to $250.00 and set a “buy” rating for the company in a research report on Friday, July 31st. UBS Group decreased their target price on ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Wells Fargo & Company dropped their price target on ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Needham & Company LLC reissued a “buy” rating and issued a $255.00 price target on shares of ARM in a research note on Thursday, July 30th. Finally, New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $305.72.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: A bullish forecast identifies Arm as a top pick with as much as 83% upside, arguing that its processor intellectual property is increasingly embedded in AI hardware used by major hyperscalers. A shift from smartphone-focused royalties toward data-center royalties could materially expand long-term revenue. Prediction: Arm Is Our Top Pick With 83% Upside Driven by Data Center Royalty Boom
• Positive Sentiment: Management remains confident in demand for Arm-based CPUs and believes the company can exceed its $2 billion AGI CPU revenue target. Agentic AI workloads may require substantially more CPU capacity per data center, potentially increasing Arm’s licensing and royalty revenue. Arm Just Got a Major Vote of Confidence From Its CEO
• Positive Sentiment: Reports of Meta’s Muse custom-chip initiative and a potential $2 billion AI-processor target reinforce Arm’s expanding role in hyperscaler and custom silicon programs. Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure
• Neutral Sentiment: SoftBank is using its Arm stake to support financing for additional OpenAI investment. This highlights the strategic value of Arm’s holdings but could also create an overhang if SoftBank ultimately needs to monetize or pledge more shares. SoftBank Is Raising $11 Billion for OpenAI
• Negative Sentiment: Valuation concerns are intensifying after the stock’s recent rally. Commentary points to very high forward earnings multiples, with growth expectations appearing substantially reflected in the share price. Arm Holdings: AI-Driven Melt-Up Overly Done
• Negative Sentiment: CFO Jason Child sold 10,400 shares for approximately $3.12 million, reducing his direct ownership by 6.35%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which lessens its signal, but it may still encourage short-term profit-taking. ARM CFO Jason Child Sells 10,400 Shares

ARM Stock Down 6.6%

The stock has a market capitalization of $331.73 billion, a price-to-earnings ratio of 320.21, a PEG ratio of 9.88 and a beta of 3.89. The company’s 50-day moving average is $262.29 and its 200-day moving average is $252.38.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the business posted $0.35 EPS. ARM’s revenue was up 22.4% on a year-over-year basis. Sell-side analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Employees Provident Fund Board acquired a new stake in ARM during the fourth quarter worth $120,241,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares during the last quarter. Janus Henderson Group PLC purchased a new position in shares of ARM during the 1st quarter worth $116,112,000. SG Americas Securities LLC increased its position in shares of ARM by 265.6% during the 1st quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares during the last quarter. Finally, Hyperion Asset Management Ltd raised its holdings in ARM by 28.0% in the 4th quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock valued at $200,713,000 after buying an additional 401,594 shares during the period. 7.53% of the stock is currently owned by institutional investors and hedge funds.

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.