Capital International Sarl raised its holdings in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM – Free Report) by 7.2% in the fourth quarter, HoldingsChannel reports. The institutional investor owned 45,440 shares of the company’s stock after acquiring an additional 3,056 shares during the quarter. Capital International Sarl’s holdings in ARM were worth $4,967,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Navalign LLC purchased a new stake in ARM in the fourth quarter valued at about $33,000. FWL Investment Management LLC purchased a new position in shares of ARM in the second quarter worth about $34,000. Strategic Investment Solutions Inc. IL raised its stake in shares of ARM by 238.1% in the third quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock worth $40,000 after purchasing an additional 200 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA purchased a new position in shares of ARM in the fourth quarter worth about $43,000. Finally, WFA of San Diego LLC purchased a new position in shares of ARM in the second quarter worth about $49,000. 7.53% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades
ARM has been the subject of several research analyst reports. Raymond James Financial restated an “outperform” rating on shares of ARM in a research note on Thursday, May 7th. Wells Fargo & Company raised their price objective on ARM from $255.00 to $410.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. Needham & Company LLC raised their price objective on ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Guggenheim raised their price objective on ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Finally, Barclays lifted their price target on ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Twenty research 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. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $226.92.
Insiders Place Their Bets
In other news, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the sale, the chief financial officer directly owned 174,232 shares in the company, valued at $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at $4,765,414.50. This trade represents a 48.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 301,338 shares of company stock valued at $66,030,158 over the last ninety days.
ARM News Summary
Here are the key news stories impacting ARM this week:
- Positive Sentiment: Arm is gaining credibility as a key AI infrastructure player after management said customers including ByteDance and Oracle are using Arm-based CPUs in data centers, supporting the case for stronger licensing and royalty growth. Arm names ByteDance and Oracle as users of its AI data centre CPUs
- Positive Sentiment: Arm is also benefiting from NVIDIA’s latest AI PC and data-center push, which reinforces demand for Arm’s architecture and could boost future adoption across the semiconductor ecosystem. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
- Neutral Sentiment: Recent insider sales by executives, including William Abbey and CAO Laura Kathleen Bartels, may attract attention, but they do not appear large enough on their own to change the company’s fundamentals. SEC insider filing SEC insider filing
- Neutral Sentiment: Broader market commentary notes that the AI trade may be cooling after a strong run, which could keep pressure on high-valuation chip names like Arm even if the growth story remains strong. Markets Rally, But Tech Stocks Get Left Behind as the AI Trade Falters
- Negative Sentiment: Arm’s valuation is being called stretched after a massive rally, and chip-sector weakness following Broadcom’s disappointing results is adding to the risk of a pullback. 2 Chip Stocks Extending Slide After Broadcom Earnings Bust
ARM Stock Performance
Shares of ARM stock opened at $342.93 on Monday. The stock has a 50 day moving average of $224.64 and a 200 day moving average of $158.11. ARM Holdings PLC Sponsored ADR has a twelve month low of $100.02 and a twelve month high of $427.99. The stock has a market cap of $366.28 billion, a P/E ratio of 408.25, a P/E/G ratio of 12.45 and a beta of 3.77.
ARM (NASDAQ:ARM – Get Free Report) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The business had revenue of $1.49 billion for the quarter. On average, research analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.
ARM 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.
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