ARM (NASDAQ:ARM) Stock Falls 7.9% on Insider Selling

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) fell 7.9% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $303.65 and last traded at $306.34. Approximately 9,455,919 shares changed hands during trading, an increase of 21% from the average session volume of 7,800,315 shares. The stock had previously closed at $332.56.

Specifically, CFO Jason Child sold 10,400 shares of the company’s 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 in the company, valued at approximately $46,032,600. This represents a 6.35% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ARM. Benchmark began coverage on shares of ARM in a research note on Thursday, July 16th. They issued a “hold” rating for the company. Needham & Company LLC restated a “buy” rating and set a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. Bank of America reaffirmed a “neutral” rating on shares of ARM in a report on Thursday, July 30th. Susquehanna boosted their price objective on ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Finally, Guggenheim reissued a “buy” rating and set a $255.00 price objective on shares of ARM in a report on Thursday, July 30th. One equities research 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $305.72.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm remains positioned to benefit from the expansion of agentic AI and data-center workloads. More AI agents could require substantially greater CPU capacity, potentially driving higher processor royalties and supporting management’s ambition to exceed its $2 billion AGI CPU revenue target. Critical Role of ARM Holdings in Powering the Next Wave of Agentic AI
• Positive Sentiment: Arm’s processor designs are increasingly important to custom AI chips and hyperscale infrastructure. The potential expansion of Meta’s Muse chip program and broader investor confidence in Arm’s data-center royalty opportunity reinforce the long-term growth narrative. Prediction: Arm Is Our Top Pick With 83% Upside
• Neutral Sentiment: Tran Capital Management highlighted Arm as a key holding in its growth strategy, reflecting institutional interest in the company’s AI exposure. However, the commentary does not represent a new contract, forecast, or operating update from Arm. Critical Role of ARM Holdings in Powering the Next Wave of Agentic AI
• Negative Sentiment: Investors are questioning whether higher server-core demand will translate into proportionally higher revenue. Arm’s results depend on its architecture share, the mix of chips using its designs, and royalty rates—not simply the number of CPU cores shipped. Arm Drops as More AI Cores Test Royalty Economics
• Negative Sentiment: Valuation is a significant pressure point. With the stock trading at exceptionally high forward and trailing earnings multiples after a substantial rally, some analysts argue that much of the AI-driven growth is already priced in, leaving limited room for execution disappointments. Arm Holdings AI-Driven Melt-Up Overly Done
• Negative Sentiment: CFO Jason Child sold 10,400 shares worth approximately $3.12 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but it nevertheless adds modest selling pressure and investor caution. ARM CFO Jason Child Sells Shares

ARM Stock Performance

The company’s 50 day simple moving average is $262.29 and its 200-day simple moving average is $252.38. The firm has a market capitalization of $327.20 billion, a PE ratio of 315.82, a PEG ratio of 9.88 and a beta of 3.89.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.35 EPS. On average, equities research analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ARM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Employees Provident Fund Board bought a new position in ARM in the 4th quarter worth about $120,241,000. Arrowstreet Capital Limited Partnership boosted its position in shares of ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after acquiring an additional 872,644 shares during the last quarter. Janus Henderson Group PLC purchased a new position in shares of ARM during the first quarter worth about $116,112,000. SG Americas Securities LLC increased its position in shares of ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares during the last quarter. Finally, Hyperion Asset Management Ltd increased its position in shares of ARM by 28.0% in the fourth quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after purchasing an additional 401,594 shares during the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.