ARM (NASDAQ:ARM) Stock Price Down 1.4% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 1.4% on Thursday . The company traded as low as $154.35 and last traded at $154.80. 15,528,846 shares changed hands during mid-day trading, an increase of 130% from the average session volume of 6,764,994 shares. The stock had previously closed at $157.07.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled its first-ever in-house AGI CPU and guided to a large new silicon revenue opportunity (management cited roughly $15B by 2031), a strategic pivot that re-rates the company from an IP licensor to an active AI-hardware competitor. Arm’s New Gambit: Building Chips to Challenge the AI Titans
• Positive Sentiment: Major customer/partner endorsements — notably Meta as a launch customer/co-developer and commitments from OpenAI, Cloudflare and others — materially de‑risk initial adoption and underpin the revenue thesis. Arm launches first own-brand chip with Meta as launch customer
• Positive Sentiment: Analysts rushed to upgrade and lift targets (Needham upgraded to Buy, Guggenheim and others raised price targets), which supports near‑term sentiment and institutional demand. Arm Stock Upgraded After Move from Blueprints to Silicon. A ‘Credible AI Play’ Is Born.
• Neutral Sentiment: Momentum metrics improved (Relative Strength rating jump to 87) and heavy options volume signaled speculative interest, which can amplify swings both up and down. Arm Holdings Stock Sees Relative Strength Rating Jump To 87
• Negative Sentiment: Several outlets warn the move into making chips must be executed perfectly; the new business is capital‑intensive and Arm’s current rich valuation already prices high success — any missed targets or delays could trigger sharp downside. Arm’s Timing Is Good, but Big Chip Move Now Has to Go Perfectly
• Negative Sentiment: Technical/short‑term factors — overbought indicators and rapid profit‑taking after the 15–18% pop — are prompting a near‑term pullback as investors lock in gains and reassess execution risk. Arm Stock Just Entered Overbought Territory. Is It Too Late to Chase the Rally Here?

Analysts Set New Price Targets

ARM has been the topic of several research reports. The Goldman Sachs Group downgraded shares of ARM from a “neutral” rating to a “sell” rating and reduced their price target for the stock from $160.00 to $120.00 in a research report on Monday, December 15th. Bank of America reaffirmed a “neutral” rating and issued a $120.00 target price on shares of ARM in a research note on Tuesday, January 13th. Barclays reiterated an “overweight” rating and set a $165.00 target price on shares of ARM in a research report on Thursday. UBS Group decreased their price target on shares of ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research note on Thursday, February 5th. Finally, TD Cowen lowered their price target on shares of ARM from $190.00 to $165.00 and set a “buy” rating for the company in a report on Thursday, February 5th. Nineteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $168.17.

ARM Stock Down 1.4%

The firm has a fifty day moving average of $120.72 and a 200-day moving average of $134.17. The firm has a market cap of $163.55 billion, a P/E ratio of 206.40, a PEG ratio of 9.31 and a beta of 4.11.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the previous year, the business posted $0.39 EPS. The company’s quarterly revenue was up 26.3% compared to the same quarter last year. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Sell-side analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Hedge Funds Weigh In On ARM

Several large investors have recently bought and sold shares of the business. Pacific Heights Asset Management LLC grew its stake in shares of ARM by 32.1% during the third quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock worth $26,176,000 after purchasing an additional 45,000 shares during the period. Orion Porfolio Solutions LLC acquired a new position in ARM in the second quarter valued at about $6,277,000. Stanley Laman Group Ltd. bought a new position in ARM during the third quarter worth about $6,219,000. Voya Investment Management LLC boosted its holdings in ARM by 15.5% during the third quarter. Voya Investment Management LLC now owns 202,443 shares of the company’s stock worth $28,644,000 after buying an additional 27,228 shares during the last quarter. Finally, Lansdowne Partners UK LLP acquired a new position in shares of ARM during the 3rd quarter worth about $8,486,000. 7.53% of the stock is currently 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.