ARM (NASDAQ:ARM) Stock Falls 2.6% – Should You Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price was down 2.6% during trading on Tuesday. The company traded as low as $175.78 and last traded at $181.49. Approximately 4,129,602 shares were traded during mid-day trading, a decline of 45% from the average session volume of 7,454,891 shares. The stock had previously closed at $186.30.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm expanded its processor lineup with new Cortex-M42 processors, adding to its product portfolio and potentially broadening its reach in embedded and connected-device markets. Arm Expands Its Portfolio with New Arm Cortex-M42 Processors
• Positive Sentiment: A report on Liontrust Investment Partners’ Global Innovation Fund says the fund bought ARM after its sell-off, signaling renewed investor interest. This is a sentiment indicator rather than evidence of a broad institutional shift. Arm Holdings plc (ARM) Was Bought Back After a Sharp Sell-Off
• Positive Sentiment: One analysis highlights Arm’s custom CPU growth and potential demand from agentic AI, arguing that longer-term earnings estimates could be too conservative. The article also cautions that the shares are not obviously cheap. Is Arm Stock a Buy on the Dip as Agentic AI Opportunity Emerges?
• Neutral Sentiment: Arm CEO Rene Haas warned that resistance to U.S. AI data centers could push projects and jobs overseas. The comments underscore policy risk to the AI infrastructure buildout, though they do not indicate a specific change in Arm’s business or results. Arm CEO Warns US AI Data Center Pushback Could Send Jobs Abroad
• Negative Sentiment: Despite quarterly revenue growth of 27% to a record $1.44 billion and an adjusted EPS beat, ARM fell about 13% on Nov. 5. The coverage points to investor concerns about the post-earnings outlook and valuation, alongside a broad semiconductor sell-off. ARM Just Dropped 13% After Earnings
• Negative Sentiment: Another article flags SoftBank Group’s ¥1.12 trillion ($7 billion) loss as a concern for Arm. That is an indirect potential overhang tied to Arm’s major shareholder, not a reported deterioration in Arm’s own operating results. SoftBank’s $7 Billion Loss Is Bad News for Arm

Analysts Set New Price Targets

ARM has been the subject of a number of recent research reports. Morgan Stanley raised their target price on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Rosenblatt Securities dropped their price target on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Wells Fargo & Company cut their price target on ARM from $280.00 to $255.00 and set an “overweight” rating for the company in a research note on Thursday, November 5th. Barclays decreased their price objective on ARM from $360.00 to $325.00 and set an “overweight” rating for the company in a report on Thursday, November 5th. Finally, Benchmark initiated coverage on ARM in a research note on Thursday, July 16th. They issued a “hold” rating on the stock. Nineteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, ARM has a consensus rating of “Moderate Buy” and an average price target of $291.72.

ARM Trading Down 2.6%

The business has a fifty day moving average of $251.72 and a 200-day moving average of $230.29. The firm has a market cap of $193.85 billion, a PE ratio of 208.61, a PEG ratio of 5.60 and a beta of 3.93.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.48 by $0.04. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. ARM had a return on equity of 11.86% and a net margin of 17.13%. The firm’s revenue was up 27.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.39 EPS. On average, equities analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.17 EPS for the current year.

Insider Activity

In other news, CFO Jason Child sold 10,400 shares of the firm’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 value of $3,120,000.00. Following the completion of the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of ARM. Focus Financial Network Inc. raised its position in ARM by 0.9% in the third quarter. Focus Financial Network Inc. now owns 4,686 shares of the company’s stock worth $1,357,000 after acquiring an additional 40 shares during the period. GAMMA Investing LLC boosted its stake in shares of ARM by 18.7% during the 2nd quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after acquiring an additional 64 shares during the last quarter. Allworth Financial LP grew its position in shares of ARM by 2.9% during the 2nd quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock valued at $804,000 after acquiring an additional 65 shares during the period. Silver Grove Financial Group Inc. grew its position in shares of ARM by 47.2% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 209 shares of the company’s stock valued at $61,000 after acquiring an additional 67 shares during the period. Finally, MCF Advisors LLC grew its position in shares of ARM by 11.7% during the 2nd quarter. MCF Advisors LLC now owns 764 shares of the company’s stock valued at $271,000 after acquiring an additional 80 shares during the period. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.