ARM Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report) shares dropped 5% on Monday . The stock traded as low as $136.00 and last traded at $136.96. Approximately 7,967,406 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 6,829,024 shares. The stock had previously closed at $144.13.
Key Headlines Impacting ARM
Here are the key news stories impacting ARM this week:
- Positive Sentiment: Wells Fargo raised its price target on ARM to $175 and kept an “overweight” rating, giving analysts’ support for further upside and likely contributing to buying interest. Article Title
- Positive Sentiment: Jim Cramer called ARM “one of the most important companies in the semiconductor industry,” highlighting ARM’s first in-house data-center CPU — a high-profile endorsement that can boost retail and momentum flows. Jim Cramer Calls Arm Holdings “One of the Most Important Companies in the Semiconductor Industry”
- Positive Sentiment: Market-quality signal: ARM’s IBD SmartSelect Composite Rating rose to 96 from 93, indicating stronger technical/relative-strength metrics that can attract growth-oriented funds and momentum traders. Article Title
- Positive Sentiment: Management and exec commentary: CFO Jason Child explained why ARM is pivoting into silicon/CPU builds and sees strong demand from agentic AI — framing the move as strategic expansion into higher-margin, full-chip opportunities. ARM Holdings (ARM) CFO on CPU Pivot, Supply Constraints & Agentic AI Demand
- Neutral Sentiment: Analysis pieces and commentary (Reuters Breakingviews, CNBC CEO interview) frame ARM’s chip push as a bold, strategic bet — supportive but highlighting execution risk and industry complexity. Arm’s chip adventure is bold bet on AI evolution Arm CEO Rene Haas: We have re-positioned the company
- Neutral Sentiment: Industry speculation: Reports project large revenue potential (e.g., a cited $15B run rate by 2031 for an AGI-focused chip), which fuels bullish forecasts but depends on adoption versus incumbents like NVIDIA. Should Arm’s AGI Chip Have NVIDIA Investors in a Panic?
- Neutral Sentiment: Market reaction coverage (MSN, The Motely Fool) documented the recent surge and investor interest but are descriptive rather than new catalysts. What’s going on with Arm Holdings stock Wednesday? Why Arm Stock Surged Today
Analyst Upgrades and Downgrades
A number of equities analysts recently commented on the stock. Needham & Company LLC raised shares of ARM from a “hold” rating to a “buy” rating and set a $200.00 price objective for the company in a research note on Thursday, March 26th. New Street Research raised ARM from a “neutral” rating to a “buy” rating in a research report on Thursday, February 5th. KeyCorp reiterated an “overweight” rating on shares of ARM in a report on Thursday, February 5th. Wells Fargo & Company boosted their price target on ARM from $165.00 to $175.00 and gave the stock an “overweight” rating in a research report on Wednesday. Finally, Guggenheim upped their price objective on ARM from $201.00 to $240.00 and gave the stock a “buy” rating in a research note on Wednesday, March 25th. Nineteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $168.58.
ARM Stock Up 2.5%
The firm has a market cap of $163.83 billion, a PE ratio of 206.76, a price-to-earnings-growth ratio of 8.65 and a beta of 4.11. The stock has a 50 day moving average price of $123.98 and a two-hundred day moving average price of $134.04.
ARM (NASDAQ:ARM – Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. ARM’s revenue was up 26.3% on a year-over-year basis. During the same period last year, the firm posted $0.39 EPS. As a group, equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.
Insider Buying and Selling at ARM
In related news, 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 value of $3,157,313.60. Following the transaction, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at $25,921,129.22. This represents a 10.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Rene A. Haas sold 7,986 shares of the firm’s stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $160.86, for a total value of $1,284,627.96. Following the completion of the transaction, the chief executive officer owned 282,979 shares of the company’s stock, valued at $45,520,001.94. This trade represents a 2.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 53,133 shares of company stock valued at $8,288,586 over the last quarter.
Institutional Inflows and Outflows
A number of hedge funds have recently modified their holdings of the company. Morgan Stanley lifted its holdings in shares of ARM by 1.2% during the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after purchasing an additional 45,314 shares during the period. Invesco Ltd. increased its holdings in ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after buying an additional 654,727 shares during the period. Coatue Management LLC raised its position in ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after buying an additional 40,174 shares during the last quarter. Wellington Management Group LLP raised its position in ARM by 41.6% during the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after buying an additional 631,576 shares during the last quarter. Finally, Schroder Investment Management Group lifted its stake in ARM by 11.0% during the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after acquiring an additional 187,035 shares during the period. 7.53% of the stock is owned by institutional investors and hedge funds.
About ARM
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.
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