ARM (NASDAQ:ARM) Shares Down 10.1% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 10.1% during mid-day trading on Thursday . The company traded as low as $210.23 and last traded at $213.4340. 22,065,805 shares traded hands during mid-day trading, an increase of 187% from the average session volume of 7,691,927 shares. The stock had previously closed at $237.30.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: ARM reported record quarterly and annual results, with strong AI cloud demand, growing royalty revenue, and early traction for its new AI-focused data-center CPU. Arm’s Record AI Results Test Lofty Valuation And Supply Constraints
• Positive Sentiment: Multiple Wall Street firms raised price targets, citing ARM’s position in agentic AI and CPU growth, including bullish calls from Wells Fargo, Guggenheim, Rosenblatt, Needham, and Goldman Sachs. Analyst price-target updates
• Neutral Sentiment: Management said AI data-center demand is expanding quickly, but the company is still working through how to monetize that demand at scale in the near term. Arm CEO looks to set the record straight after the stock’s post-earnings tumble
• Neutral Sentiment: Arm also made an upbeat long-term forecast for the CPU market, which supports the growth narrative but does not remove near-term execution concerns. Arm Just Made a Bold Prediction, And It Could Be a Huge Buy Signal
• Negative Sentiment: ARM warned that smartphone market weakness could hurt a vital revenue stream, prompting investors to sell the stock despite the earnings beat. Chip Designer Arm Warns of Weakness in the Smartphone Market. Its Stock Is Sinking.
• Negative Sentiment: Investors also reacted to concerns that supply constraints could prevent ARM from meeting surging demand for its new AI chip in the near term. Why Arm Holdings Stock Was Sliding Today

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Wells Fargo & Company boosted their price objective on ARM from $220.00 to $255.00 and gave the company an “overweight” rating in a research note on Thursday. Needham & Company LLC increased their target price on ARM from $200.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday. Evercore lowered their target price on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research report on Thursday, February 5th. Guggenheim increased their target price on ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday. Finally, UBS Group lowered their target price on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Nineteen equities 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. According to data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $199.61.

ARM Stock Down 0.0%

The business has a 50 day simple moving average of $154.24 and a two-hundred day simple moving average of $138.41. The firm has a market cap of $225.32 billion, a PE ratio of 253.89, a price-to-earnings-growth ratio of 9.60 and a beta of 3.40.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. Equities analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.18 earnings per share for the current year.

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 21,280 shares of the firm’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the transaction, the chief financial officer owned 174,706 shares in the company, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Rene A. Haas sold 23,867 shares of the firm’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer owned 290,965 shares in the company, valued at approximately $46,894,829.05. This represents a 7.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 83,712 shares of company stock worth $13,614,730.

Hedge Funds Weigh In On ARM

Several institutional investors have recently made changes to their positions in the company. Capital Research Global Investors bought a new stake in ARM during the third quarter valued at about $243,098,000. Northwestern Mutual Wealth Management Co. boosted its position in ARM by 2,623.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after purchasing an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd bought a new stake in ARM during the third quarter valued at about $202,980,000. Employees Provident Fund Board bought a new stake in ARM during the fourth quarter valued at about $120,241,000. Finally, SG Americas Securities LLC boosted its position in ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after purchasing an additional 705,459 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

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.