ARM (NASDAQ:ARM) Stock Price Down 6.6% – Here’s What Happened

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 6.6% during trading on Thursday . The stock traded as low as $309.74 and last traded at $315.28. 7,526,496 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 8,964,300 shares. The stock had previously closed at $337.47.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported another quarter of solid revenue growth, driven by higher licensing activity and a larger royalty base, reinforcing demand for its chip architecture and AI-related exposure. Arm Holdings’ Robust Licensing Business Drives AI-Fueled Growth
• Positive Sentiment: Oracle Cloud Infrastructure joined Arm’s AGI CPU ecosystem, expanding Arm’s reach into agentic AI and data-center workloads and broadening its enterprise cloud footprint. Arm (ARM) Expands Its AGI CPU Ecosystem With Oracle Cloud Infrastructure
• Positive Sentiment: Nvidia’s ARM-based laptop superchip highlights continued industry interest in Arm’s architecture and could further validate the company’s ecosystem strength. Nvidia unveiled an ARM-based laptop superchip aimed squarely at Apple silicon
• Neutral Sentiment: Several articles note that Arm’s stock has risen sharply this year, reflecting strong AI optimism, but this also means expectations are already elevated. ARM Stock Soars 118% in a Year: Is the Buying Opportunity Gone?
• Negative Sentiment: Multiple rating-downgrade and valuation-focused pieces argue that Arm’s share price has run ahead of fundamentals, warning that the premium valuation leaves little room for disappointment. Arm Holdings: The Valuation Is Ahead Of The Story (Rating Downgrade)
• Negative Sentiment: Another bearish note warned that speculative momentum in ARM could reverse sharply if growth expectations cool or investor enthusiasm fades. Arm Holdings: A Speculative Rally Could Easily Lead To A Disaster For Current Buyers
• Negative Sentiment: Concerns were also raised that SoftBank-related liquidation risk and broader macro pressures could weigh on the stock despite its AI narrative. Arm Holdings: Agentic Silicon Arbitrage Eclipsed By SoftBank Liquidation Threat (Rating Downgrade)

Analyst Ratings Changes

Several research firms recently issued reports on ARM. Susquehanna increased their target price on ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research report on Thursday, April 16th. Bank of America upped their price target on ARM from $335.00 to $460.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 23rd. Sanford C. Bernstein set a $500.00 price objective on shares of ARM in a report on Wednesday, June 17th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Finally, TD Cowen upped their target price on shares of ARM from $265.00 to $475.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Nineteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $279.83.

ARM Price Performance

The company has a market capitalization of $336.74 billion, a P/E ratio of 375.33, a price-to-earnings-growth ratio of 11.45 and a beta of 3.76. The business has a 50 day moving average of $307.70 and a 200 day moving average of $189.88.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. On average, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Buying and Selling at ARM

In other news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares in the company, valued at approximately $10,824,696.25. This trade represents a 50.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of ARM stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the sale, the insider owned 5,543 shares of the company’s stock, valued at $1,159,318.45. The trade was a 81.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 248,205 shares of company stock valued at $57,741,572.

Hedge Funds Weigh In On ARM

Institutional investors have recently bought and sold shares of the business. Syntax Research Inc. acquired a new stake in shares of ARM in the 1st quarter worth $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in ARM in the first quarter valued at about $30,000. Mcguire Capital Advisors Inc. acquired a new stake in ARM in the fourth quarter worth about $30,000. Navalign LLC purchased a new stake in shares of ARM during the fourth quarter worth about $33,000. Finally, FWL Investment Management LLC acquired a new position in shares of ARM during the second quarter valued at about $34,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

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.