ARM (NASDAQ:ARM) Stock Price Down 1.5% – Here’s Why

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares fell 1.5% on Monday. The stock traded as low as $299.80 and last traded at $302.90. Approximately 2,880,113 shares changed hands during mid-day trading, a decline of 63% from the average session volume of 7,714,879 shares. The stock had previously closed at $307.49.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s exposure to AI and data-center infrastructure remains a key growth catalyst. Analysts have highlighted the shift toward agentic AI as a potential driver of increased demand for Arm-based computing and have argued that selling its own data-center CPUs could allow Arm to capture more revenue per system. Agentic AI Shift Provides a Catalyst for Growth
• Neutral Sentiment: Arm will report second-quarter fiscal 2027 results after the market closes on November 4, followed by a conference call covering results and its business outlook. The announcement gives investors a near-term catalyst to assess licensing momentum, AI demand and guidance. Arm Announces Earnings Release Date
• Negative Sentiment: Arm and Qualcomm have begun a Delaware federal-court trial over a licensing dispute. Qualcomm alleges that Arm withheld chip-testing tools required under their agreement and improperly disclosed a termination threat connected to a potential Meta deal. Qualcomm is seeking relief that could affect billions of dollars in future royalty payments, creating material legal and revenue risk for Arm. Qualcomm and Arm Begin New Trial
• Negative Sentiment: After an approximately 187% year-to-date advance, Arm’s valuation leaves less room for disappointing news. A beta near 3.9 indicates unusually high sensitivity to market volatility, while the cited Wall Street price target of about $289 is below recent trading levels. The Highest-Beta Name in Big Tech Just Ran

Wall Street Analysts Forecast Growth

ARM has been the subject of a number of recent analyst reports. Piper Sandler assumed coverage on shares of ARM in a research note on Wednesday, September 9th. They set an “overweight” rating and a $320.00 price target for the company. KeyCorp increased their price objective on shares of ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. HSBC downgraded shares of ARM from a “buy” rating to a “hold” rating and raised their price objective for the stock from $255.00 to $315.00 in a research note on Tuesday, July 14th. Jefferies Financial Group reaffirmed a “buy” rating and set a $320.00 target price on shares of ARM in a research note on Monday, July 20th. Finally, Susquehanna increased their price target on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Trading Down 1.5%

The company has a market cap of $323.52 billion, a PE ratio of 312.27, a P/E/G ratio of 9.12 and a beta of 3.78. The company’s 50 day moving average is $265.65 and its 200 day moving average is $261.24.

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

Insider Activity

In related news, CFO Jason Child sold 10,400 shares of the stock in a transaction that occurred 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 transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a document filed 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.

Institutional Investors Weigh In On ARM

Hedge funds have recently made changes to their positions in the company. Paragon Capital Management Inc. increased its stake in ARM by 40.4% during the 1st quarter. Paragon Capital Management Inc. now owns 10,609 shares of the company’s stock valued at $1,605,000 after purchasing an additional 3,055 shares in the last quarter. Capital Research Global Investors lifted its position in ARM by 5.1% during the 4th quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock worth $197,332,000 after acquiring an additional 86,978 shares during the period. QRG Capital Management Inc. increased its holdings in shares of ARM by 32.1% in the second quarter. QRG Capital Management Inc. now owns 9,591 shares of the company’s stock valued at $3,401,000 after purchasing an additional 2,330 shares during the period. Employees Provident Fund Board purchased a new position in shares of ARM in the fourth quarter worth about $120,241,000. Finally, BlueCrest Capital Management Ltd purchased a new stake in ARM in the second quarter valued at approximately $1,359,000. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.