ARM (NASDAQ:ARM) Stock Price Down 7.9% on Insider Selling

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price fell 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 daily 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 that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the completion of the sale, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several research analysts have recently commented on ARM shares. Barclays raised their price objective on ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target for the company in a research note on Thursday, July 30th. Wells Fargo & Company lowered their price objective on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Morgan Stanley boosted their price target on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Finally, Benchmark initiated coverage on shares of ARM in a report on Thursday, July 16th. They set a “hold” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $305.72.

ARM News Roundup

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 Performance

The company’s fifty day moving average price is $262.29 and its 200-day moving average price is $252.38. The stock has a market cap of $331.73 billion, a P/E ratio of 320.21, a price-to-earnings-growth ratio of 9.88 and a beta of 3.89.

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

Hedge Funds Weigh In On ARM

Several hedge funds have recently bought and sold shares of the business. Hyperion Asset Management Ltd lifted its holdings in ARM by 28.0% during 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 in the last quarter. Capital Research Global Investors boosted its stake in ARM by 5.1% in the 4th quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock worth $197,332,000 after purchasing an additional 86,978 shares in the last quarter. Franklin Resources Inc. increased its position in shares of ARM by 0.7% in the 4th quarter. Franklin Resources Inc. now owns 1,461,410 shares of the company’s stock valued at $159,747,000 after acquiring an additional 10,385 shares during the period. Employees Provident Fund Board acquired a new position in shares of ARM in the fourth quarter valued at about $120,241,000. Finally, SG Americas Securities LLC raised its stake in shares of ARM by 265.6% in the first 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. Institutional investors own 7.53% of the company’s stock.

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.