ARM (NASDAQ:ARM) Shares Climb 6.2% – Here’s What Happened

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) rose 6.2% during mid-day trading on Monday. The stock traded as high as $225.67 and last traded at $223.35. Approximately 4,645,221 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 7,498,200 shares. The stock had previously closed at $210.33.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: An earnings preview argues that stronger-than-expected fiscal second-quarter results could help Arm recover from its recent weakness. Investor interest is centered on continued AI-related demand, data-center expansion and the company’s high-margin chip-architecture licensing model. Why Arm’s Q2 earnings could spur a recovery in its stock
• Positive Sentiment: A comparison with Western Digital highlights Arm’s dominant position in chip architecture, recurring licensing economics and growing data-center exposure as reasons investors may continue to view the company as a long-term AI infrastructure beneficiary. Arm vs. Western Digital: Which Tech Stock Is the Better Buy in November?
• Neutral Sentiment: A comparison with Coherent presents strong AI-driven optical-networking demand as an attractive alternative and notes that Coherent’s valuation is more favorable than Arm’s. The discussion reinforces Arm’s growth appeal but also underscores its demanding valuation. Coherent vs. Arm Holdings: Which Tech Stock Offers More Upside Now?
• Neutral Sentiment: Reports about a giant arm-shaped interface element appearing in X’s post composer are unrelated to Arm Holdings and are not expected to affect ARM’s fundamentals or stock.
• Negative Sentiment: An earnings preview warns that Arm’s price tag remains excessively high, leaving the stock vulnerable to disappointment if revenue growth, licensing activity or forward guidance fail to justify its premium multiple. Arm: The Price Tag Remains Far Too Steep (Earnings Preview)
• Negative Sentiment: A jury found Arm breached its architectural license agreement with Qualcomm and intentionally disrupted Qualcomm’s business, creating legal and customer-relationship risks. Arm’s separate Axiado collaboration to add security modules to its server CPU platform provides a potential strategic benefit but does not eliminate the overhang from the ruling. Arm Holdings Faces Jury Breach Ruling As It Unveils Server Security Tie Up

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Wells Fargo & Company decreased their target price on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Bank of America restated a “neutral” rating and set a $335.00 price target (up from $245.00) on shares of ARM in a report on Thursday, July 30th. Piper Sandler assumed coverage on ARM in a research note on Wednesday, September 9th. They issued an “overweight” rating and a $320.00 price objective on the stock. KeyCorp lifted their price objective on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Finally, Benchmark began coverage on ARM in a report on Thursday, July 16th. They set a “hold” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Trading Up 4.1%

The firm’s 50-day moving average price is $260.38 and its 200-day moving average price is $226.25. The stock has a market capitalization of $251.96 billion, a PE ratio of 243.20, a PEG ratio of 6.24 and a beta of 3.78.

ARM (NASDAQ:ARM) last announced 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. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm earned $0.35 EPS. The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. On average, equities research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Transactions at ARM

In other news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction that occurred on Monday, September 21st. The stock was 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 owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a document filed 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.

Hedge Funds Weigh In On ARM

Several large investors have recently modified their holdings of ARM. Arrowstreet Capital Limited Partnership lifted its position in ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares during the last quarter. Janus Henderson Group PLC bought a new position in ARM during the first quarter valued at $116,112,000. Hyperion Asset Management Ltd raised its stake in shares of ARM by 36.9% in the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock valued at $210,662,000 after acquiring an additional 195,942 shares during the period. Altshuler Shaham Ltd raised its stake in shares of ARM by 202.6% in the first quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company’s stock valued at $72,356,000 after acquiring an additional 320,236 shares during the period. Finally, Sei Investments Co. lifted its holdings in shares of ARM by 67.5% in the 1st quarter. Sei Investments Co. now owns 454,220 shares of the company’s stock worth $68,714,000 after acquiring an additional 183,045 shares during the last quarter. Institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.