ARM (NASDAQ:ARM) Stock Price Down 10.1% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price was down 10.1% during mid-day trading on Thursday . The stock traded as low as $210.23 and last traded at $213.4340. Approximately 22,065,805 shares traded hands during trading, an increase of 187% from the average daily volume of 7,691,927 shares. The stock had previously closed at $237.30.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Quarterly beat and bullish near‑term guidance: ARM topped revenue and EPS estimates and guided above Street expectations for the next quarter, which initially sent the stock higher. Arm forecasts upbeat revenue on surging AI data center demand
• Positive Sentiment: Strong AI‑CPU demand — management cited over $2 billion of customer demand for its new data‑center/AGI CPU, positioning ARM to capture higher‑margin datacenter revenue versus its historical IP licensing model. Arm Holdings Reports Higher Profit, Strong Demand for New CPUs
• Positive Sentiment: Wall Street upgrades and price‑target increases from multiple boutiques (Wells Fargo, Guggenheim, Needham, Rosenblatt, Mizuho) reflect bullish views on ARM’s AI runway. Analyst price‑target coverage
• Neutral Sentiment: Strategic pivot under scrutiny: ARM’s shift toward designing its own data‑center CPUs could expand addressable market but raises execution and channel‑conflict questions with existing customers. Arm’s Recent Pivot Will Power a New $15 Billion Market
• Neutral Sentiment: Unusual options and heavy trading indicate elevated positioning and volatility — large call buying and a big jump in volume amplified the stock’s swing. Market activity and volume
• Negative Sentiment: Smartphone weakness and supply constraints: Management warned smartphone demand is softening and flagged potential supply bottlenecks (memory/other components) that could limit how quickly ARM can monetize AI demand — a key reason for today’s drop. Chip Designer Arm Warns of Weakness in the Smartphone Market
• Negative Sentiment: Investor skepticism on near‑term monetization: Analysts (e.g., Bank of America) say much of the agentic AI CPU story may already be priced in and question how quickly ARM can convert demand into revenue given execution risks. Arm slides as investors question near-term monetization of AI demand
• Negative Sentiment: Conflicting analyst signals: Goldman raised its target but kept a “sell” rating, signaling disagreement on valuation versus execution — a mixed message that can pressure sentiment. Goldman Sachs price target action

Wall Street Analysts Forecast Growth

ARM has been the subject of a number of research reports. Barclays reiterated an “overweight” rating on shares of ARM in a report on Thursday. Evercore reduced their price objective on shares of ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research note on Thursday, February 5th. Jefferies Financial Group reissued a “buy” rating on shares of ARM in a research note on Thursday. Bank of America reissued a “neutral” rating and issued a $120.00 price objective on shares of ARM in a research note on Tuesday, January 13th. Finally, Royal Bank Of Canada boosted their price objective on shares of ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research note on Thursday. Nineteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $194.83.

ARM Trading Down 10.1%

The company has a 50 day simple moving average of $152.53 and a 200 day simple moving average of $138.08. The stock has a market capitalization of $225.50 billion, a PE ratio of 284.58, a P/E/G ratio of 9.39 and a beta of 3.40.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a return on equity of 14.01% and a net margin of 17.15%. On average, equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.85 EPS for the current year.

Insiders Place Their Bets

In other ARM news, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Jason Child sold 21,280 shares of the company’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the transaction, the chief financial officer owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. The trade was a 10.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 83,712 shares of company stock worth $13,614,730.

Institutional Investors Weigh In On ARM

Hedge funds have recently added to or reduced their stakes in the company. Compound Planning Inc. lifted its position in shares of ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after purchasing an additional 69 shares during the last quarter. Ritholtz Wealth Management lifted its position in shares of ARM by 3.0% during the 3rd quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock worth $345,000 after purchasing an additional 70 shares during the last quarter. Rathbones Group PLC lifted its position in shares of ARM by 0.7% during the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock worth $1,493,000 after purchasing an additional 70 shares during the last quarter. Nwam LLC lifted its position in shares of ARM by 4.3% during the 3rd quarter. Nwam LLC now owns 1,711 shares of the company’s stock worth $242,000 after purchasing an additional 71 shares during the last quarter. Finally, Kovack Advisors Inc. lifted its position in shares of ARM by 2.0% during the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after purchasing an additional 72 shares during the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.