ARM (NASDAQ:ARM) Stock Price Down 2.4% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 2.4% during mid-day trading on Wednesday . The company traded as low as $344.12 and last traded at $357.6480. 8,309,677 shares changed hands during mid-day trading, a decline of 8% from the average session volume of 9,047,557 shares. The stock had previously closed at $366.39.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm received fresh analyst support, including a Bank of America price-target increase to $460, which suggests Wall Street still sees meaningful upside even after the recent pullback.
• Positive Sentiment: Recent coverage highlighted Arm as a potential winner in the next AI wave, citing stronger CPU rack demand and growing use of Arm-based chips in data centers and AI infrastructure.
• Positive Sentiment: Reports also pointed to Arm servers capturing a large share of data-center revenue, reinforcing the long-term bull case that the company is gaining traction beyond mobile devices.
• Neutral Sentiment: Masayoshi Son’s comments that Arm could eventually be worth far more added to the long-term optimism around the stock, but this is more of a valuation headline than a near-term fundamental catalyst.
• Negative Sentiment: Arm shares have been under pressure as investors take profits in AI-related winners, and one report noted insider-selling concerns alongside valuation jitters, which appears to be weighing on sentiment.
• Negative Sentiment: Despite the bullish upgrades, the stock has been falling for several sessions, suggesting traders are more focused on stretched valuation and sector rotation than on the company’s long-term AI opportunity.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on ARM shares. Rosenblatt Securities upped their price target on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Guggenheim boosted their price objective on ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. UBS Group upped their target price on shares of ARM from $260.00 to $470.00 and gave the stock a “buy” rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a report on Thursday, May 7th. Finally, Royal Bank Of Canada lifted their price target on shares of ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research note on Thursday, May 7th. Nineteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $279.83.

ARM Trading Down 2.4%

The stock has a fifty day simple moving average of $280.67 and a 200-day simple moving average of $179.01. The company has a market capitalization of $382.00 billion, a PE ratio of 425.77, a P/E/G ratio of 14.81 and a beta of 3.77.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The firm had revenue of $1.49 billion for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. As a group, equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Buying and Selling at ARM

In related news, insider Spencer Collins sold 51,961 shares of the company’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the transaction, the insider owned 51,125 shares of the company’s stock, valued at $10,824,696.25. This represents a 50.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Jason Child sold 31,920 shares of ARM stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the sale, the chief financial officer owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 256,191 shares of company stock valued at $59,026,200.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Western Wealth Management LLC purchased a new position in ARM during the first quarter worth approximately $179,000. Pacer Advisors Inc. raised its holdings in ARM by 19.5% in the first quarter. Pacer Advisors Inc. now owns 139,386 shares of the company’s stock valued at $21,086,000 after buying an additional 22,765 shares during the period. Empowered Funds LLC raised its holdings in ARM by 8.2% in the first quarter. Empowered Funds LLC now owns 6,003 shares of the company’s stock valued at $908,000 after buying an additional 456 shares during the period. Pine Valley Investments Ltd Liability Co lifted its position in ARM by 3.5% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 11,339 shares of the company’s stock valued at $1,715,000 after buying an additional 379 shares in the last quarter. Finally, Parallel Advisors LLC lifted its position in ARM by 53.3% during the first quarter. Parallel Advisors LLC now owns 3,142 shares of the company’s stock valued at $475,000 after buying an additional 1,093 shares in the last quarter. Hedge funds and other institutional investors 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.