Arm Holdings PLC Sponsored ADR (NASDAQ:ARM – Get Free Report) shares traded down 5.3% on Wednesday. The stock traded as low as $189.88 and last traded at $191.80. 8,285,914 shares were traded during mid-day trading, an increase of 11% from the average session volume of 7,443,106 shares. The stock had previously closed at $202.49.
Key ARM News
Here are the key news stories impacting ARM this week:
- Positive Sentiment: Arm reported quarterly EPS of $0.52, above the $0.48 consensus, and revenue of $1.44 billion, topping the $1.38 billion estimate. Arm’s fiscal second-quarter results
- Neutral Sentiment: The company published its shareholder letter with fiscal Q2 2027 results. The supplied report does not provide additional guidance or detail on how AI-related demand is translating into shipments and royalties, issues investors are watching. Arm quarterly and annual results
- Negative Sentiment: AI-infrastructure spending concerns and uncertainty over chip demand have weighed on sentiment across the sector. Reports ahead of earnings highlighted investor focus on data-center and smartphone demand, while options-market expectations pointed to a risk of a post-earnings decline. Arm shares face earnings expectations Barchart options-market outlook
- Negative Sentiment: Arm’s shares had already fallen sharply in recent weeks, adding to volatility and making the market’s expectations for continued growth harder to meet. The earnings beat may not fully reassure investors without clearer evidence that AI demand will deliver sustained results. Recent Arm share decline and earnings context
Analyst Ratings Changes
Several equities analysts recently issued reports on the stock. HSBC downgraded shares of ARM from a “buy” rating to a “hold” rating and lifted their price target for the company from $255.00 to $315.00 in a report on Tuesday, July 14th. Royal Bank Of Canada decreased their price objective on shares of ARM from $475.00 to $340.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Needham & Company LLC reaffirmed a “buy” rating and set a $255.00 price objective on shares of ARM in a report on Thursday, July 30th. Piper Sandler initiated coverage on shares of ARM in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $320.00 target price for the company. Finally, KeyCorp boosted their target price on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $303.32.
ARM Stock Performance
The company’s 50-day moving average is $257.07 and its 200-day moving average is $228.85. The firm has a market cap of $204.86 billion, a price-to-earnings ratio of 197.73, a P/E/G ratio of 5.84 and a beta of 3.93.
ARM (NASDAQ:ARM – Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.38 billion. On average, analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.
Insider Activity at ARM
In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the sale, the chief financial officer directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Institutional Inflows and Outflows
Several large investors have recently bought and sold shares of the company. Focus Financial Network Inc. increased its stake in shares of ARM by 0.9% in the 3rd quarter. Focus Financial Network Inc. now owns 4,686 shares of the company’s stock valued at $1,357,000 after buying an additional 40 shares during the period. GAMMA Investing LLC raised its position in shares of ARM by 18.7% during the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after acquiring an additional 64 shares during the last quarter. Allworth Financial LP raised its position in shares of ARM by 2.9% during the second quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock worth $804,000 after acquiring an additional 65 shares during the last quarter. MCF Advisors LLC raised its position in shares of ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock worth $271,000 after acquiring an additional 80 shares during the last quarter. Finally, SteelPeak Wealth LLC lifted its stake in shares of ARM by 11.0% during the third quarter. SteelPeak Wealth LLC now owns 931 shares of the company’s stock valued at $270,000 after acquiring an additional 92 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.
About ARM
Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.
The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.
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