Arm Holdings PLC Sponsored ADR $ARM Stock: D.A. Davidson & CO. Lowers Stake

D.A. Davidson & CO. lowered its position in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) by 69.9% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,217 shares of the company’s stock after selling 5,156 shares during the quarter. D.A. Davidson & CO.’s holdings in ARM were worth $642,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Kings Path Partners LLC acquired a new stake in shares of ARM during the 3rd quarter valued at about $29,000. Evelyn Partners Investment Management Services Ltd bought a new position in shares of ARM in the 1st quarter valued at about $30,000. Cassaday & Co Wealth Management LLC bought a new position in shares of ARM in the first quarter valued at about $40,000. Sterling Capital Management LLC grew its holdings in ARM by 1,400.0% in the 1st quarter. Sterling Capital Management LLC now owns 375 shares of the company’s stock valued at $57,000 after buying an additional 350 shares in the last quarter. Finally, CX Institutional bought a new stake in shares of ARM in the third quarter valued at approximately $58,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, ahead of estimates. Licensing revenue rose 50%, and data-center royalties doubled, highlighting demand for Arm technology in AI infrastructure. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s push into its own AGI CPU could broaden its opportunity beyond chip-design royalties; management sees potential for up to $2 billion in revenue in fiscal 2027–28. Oracle has also said it plans to offer Arm AGI CPU instances in 2027. Arm Holdings’ Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: UBS and JPMorgan retained Buy/Overweight ratings despite cutting their price targets, indicating continued analyst confidence in potential upside. UBS analyst recommendations JPMorgan price target
• Neutral Sentiment: AI and data-center stocks faced market-wide pressure after midterm-election results raised concerns about a possible slowdown in data-center investment. Major indexes recovered some losses Friday, offering a more supportive backdrop, though uncertainty remains. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: Investors focused on weaker smartphone-related royalties and concerns that handset demand may soften, offsetting Arm’s strong data-center growth. Royalty revenue is recurring, so slower growth here may temper expectations for future earnings. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns amplified the post-earnings selloff: investors questioned whether Arm’s high expectations are justified even after the quarterly revenue beat. UBS cut its target from $320 to $270, and JPMorgan lowered its target from $255 to $245. Arm stock slides as results stoke valuation doubts

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction on Monday, September 21st. The stock was 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 directly owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Jefferies Financial Group reiterated a “buy” rating and issued a $320.00 target price on shares of ARM in a report on Monday, July 20th. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research note on Thursday, October 15th. Wells Fargo & Company lowered their price target on ARM from $280.00 to $255.00 and set an “overweight” rating for the company in a report on Thursday. JPMorgan Chase & Co. decreased their price target on shares of ARM from $255.00 to $245.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, HSBC reissued a “hold” rating and issued a $215.00 price target on shares of ARM in a report on Thursday. Nineteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $291.72.

ARM Stock Performance

ARM stock opened at $174.62 on Friday. The stock has a fifty day moving average of $252.78 and a 200-day moving average of $229.93. Arm Holdings PLC Sponsored ADR has a fifty-two week low of $100.02 and a fifty-two week high of $452.70. The company has a market capitalization of $186.51 billion, a price-to-earnings ratio of 200.71, a PEG ratio of 5.84 and a beta of 3.93.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.04. ARM had a return on equity of 12.24% and a net margin of 20.25%. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the firm earned $0.39 earnings per share. ARM’s revenue for the quarter was up 27.1% on a year-over-year basis. Equities analysts predict that Arm Holdings PLC Sponsored ADR will post 1.17 EPS for the current year.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them.

Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.