ARM (NASDAQ:ARM) Trading Down 1.6% After Insider Selling

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded down 1.6% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $381.25 and last traded at $402.3960. 20,615,947 shares changed hands during trading, an increase of 72% from the average session volume of 11,984,234 shares. The stock had previously closed at $408.85.

Specifically, insider William Abbey sold 4,200 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $343.81, for a total transaction of $1,444,002.00. Following the sale, the insider owned 27,129 shares of the company’s stock, valued at $9,327,221.49. This trade represents a 13.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ARM. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Morgan Stanley reissued an “equal weight” rating and set a $150.00 target price (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. Needham & Company LLC increased their price target on ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. HSBC raised ARM from a “reduce” rating to a “buy” rating and increased their price target for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Finally, Sanford C. Bernstein started coverage on ARM in a research report on Monday, May 18th. They set an “outperform” rating and a $300.00 price target on the stock. Twenty research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $226.92.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Nvidia’s new RTX Spark AI PC chip reportedly uses Arm-based CPU design, which investors see as a major validation of Arm’s architecture and a potential boost for future licensing and royalty revenue. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Reports said Arm reached a record high as investors interpreted Nvidia’s chip launch as evidence that Arm is becoming more central to AI PCs and data-center computing. Why Arm Stock Hit A Record High on Nvidia’s Chip Announcement
• Positive Sentiment: Arm’s CEO said demand for the company’s AI-focused chips is running ahead of expectations, with one report suggesting the company’s $15 billion chip-sales target may arrive earlier than anticipated. Arm’s $15 Billion AI Chip Target May Arrive Early
• Positive Sentiment: Commentary from Arm’s CEO on agentic AI and Taiwan’s ecosystem reinforced the view that AI workloads could drive a long runway of CPU demand for Arm’s architecture. Arm CEO Haas on Agentic AI and Taiwan’s Ecosystem
• Neutral Sentiment: Insider William Abbey sold 4,200 shares, but the transaction appears modest relative to the stock’s recent surge and is unlikely to be the main driver of trading today. Insider trade disclosure
• Negative Sentiment: One market commentary warned that some AI stocks may be “priced to perfection,” which could add caution after ARM’s sharp run-up. Priced to Perfection? Select AI Stocks Set Up Climax Tops

ARM Stock Down 1.6%

The stock has a 50-day moving average of $204.85 and a 200 day moving average of $151.19. The stock has a market cap of $425.14 billion, a PE ratio of 479.04, a P/E/G ratio of 12.83 and a beta of 3.77.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The business had revenue of $1.49 billion during the quarter. Research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently made changes to their positions in ARM. Syntax Research Inc. acquired a new position in ARM in the first quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new stake in ARM during the first quarter worth $30,000. FWL Investment Management LLC purchased a new stake in ARM in the second quarter valued at $34,000. Cassaday & Co Wealth Management LLC purchased a new stake in ARM in the first quarter valued at $40,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in shares of ARM in the 4th quarter valued at $30,000. Institutional investors and hedge funds 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.