Jason Child Sells 10,400 Shares of ARM (NASDAQ:ARM) Stock

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) CFO Jason Child sold 10,400 shares of the business’s stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total transaction of $2,655,432.00. Following the transaction, the chief financial officer owned 163,832 shares in the company, valued at approximately $41,831,224.56. This represents a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ARM Trading Down 2.9%

Shares of NASDAQ:ARM opened at $234.82 on Wednesday. The firm has a market cap of $250.81 billion, a price-to-earnings ratio of 242.08, a P/E/G ratio of 7.17 and a beta of 3.89. Arm Holdings PLC Sponsored ADR has a 1 year low of $100.02 and a 1 year high of $452.70. The business has a fifty day simple moving average of $279.43 and a 200 day simple moving average of $236.40.

ARM (NASDAQ:ARM) last issued its 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. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the previous year, the company posted $0.35 earnings per share. The business’s quarterly revenue was up 22.4% compared to the same quarter last year. On average, sell-side analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on ARM shares. Sanford C. Bernstein set a $500.00 price objective on shares of ARM in a research report on Wednesday, June 17th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research report on Friday, July 17th. Jefferies Financial Group restated a “buy” rating and set a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Morgan Stanley raised their price target on shares of ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Finally, The Goldman Sachs Group lifted their price objective on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. Eighteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $305.12.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm remains positioned as a key supplier of CPU architecture for AI data centers and other computing markets. Bullish commentary argues that its licensing and royalty model could benefit from continued AI infrastructure spending, while the company’s recent earnings showed 22.4% year-over-year revenue growth and earnings above consensus. Wall Street May Be Sleeping on This Massive AI CPU Opportunity
• Neutral Sentiment: Arm’s participation in the TestMu Conference highlights its efforts to expand its developer ecosystem and promote its AI-focused infrastructure and AGI CPU initiatives. The event may increase investor attention, but it does not represent a new financial forecast or contract announcement. Arm Holdings Heads To TestMu Conference
• Negative Sentiment: Investors are concerned that CEO Rene Haas’s reported $800 million compensation package could trigger shareholder opposition. Criticism from shareholder-advisory firms and other investors raises governance and dilution concerns, potentially adding pressure ahead of any shareholder vote. ARM CEO’s $800 million pay package could face shareholder backlash
• Negative Sentiment: CFO Jason Child sold 10,400 ARM shares for approximately $2.66 million. The transaction was executed under a pre-arranged Rule 10b5-1 plan, which reduces its significance as a discretionary bearish signal, but the sale still unsettled investors given ARM’s elevated valuation. Child continues to own 163,832 shares. Insider Selling: ARM CFO Sells 10,400 Shares
• Negative Sentiment: Comparisons with NVIDIA have also highlighted concerns that ARM’s AI growth expectations may already be reflected in its share price. Analysts cited NVIDIA’s faster growth, stronger cash generation and lower valuation as reasons to prefer NVIDIA, reinforcing profit-taking pressure in ARM. Why Arm Holdings Stock Fell

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ARM. GAMMA Investing LLC grew its position in shares of ARM by 18.7% in the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock valued at $144,000 after purchasing an additional 64 shares during the last quarter. CreativeOne Wealth LLC lifted its position in shares of ARM by 5.0% during the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after purchasing an additional 87 shares during the last quarter. AdvisorNet Financial Inc lifted its position in shares of ARM by 6.2% during the 1st quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after purchasing an additional 98 shares during the last quarter. TD Waterhouse Canada Inc. boosted its stake in ARM by 0.5% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 18,674 shares of the company’s stock valued at $6,309,000 after purchasing an additional 102 shares during the period. Finally, Moors & Cabot Inc. boosted its stake in ARM by 5.3% during the 3rd quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock valued at $290,000 after purchasing an additional 103 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings (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.