ARM (NASDAQ:ARM) Stock Price Down 1.4% – Time to Sell?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 1.4% during trading on Thursday . The stock traded as low as $154.35 and last traded at $154.80. 15,528,846 shares changed hands during mid-day trading, an increase of 130% from the average session volume of 6,764,994 shares. The stock had previously closed at $157.07.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm unveiled its first-ever in-house AGI CPU and guided to a large new silicon revenue opportunity (management cited roughly $15B by 2031), a strategic pivot that re-rates the company from an IP licensor to an active AI-hardware competitor. Arm’s New Gambit: Building Chips to Challenge the AI Titans
• Positive Sentiment: Major customer/partner endorsements — notably Meta as a launch customer/co-developer and commitments from OpenAI, Cloudflare and others — materially de‑risk initial adoption and underpin the revenue thesis. Arm launches first own-brand chip with Meta as launch customer
• Positive Sentiment: Analysts rushed to upgrade and lift targets (Needham upgraded to Buy, Guggenheim and others raised price targets), which supports near‑term sentiment and institutional demand. Arm Stock Upgraded After Move from Blueprints to Silicon. A ‘Credible AI Play’ Is Born.
• Neutral Sentiment: Momentum metrics improved (Relative Strength rating jump to 87) and heavy options volume signaled speculative interest, which can amplify swings both up and down. Arm Holdings Stock Sees Relative Strength Rating Jump To 87
• Negative Sentiment: Several outlets warn the move into making chips must be executed perfectly; the new business is capital‑intensive and Arm’s current rich valuation already prices high success — any missed targets or delays could trigger sharp downside. Arm’s Timing Is Good, but Big Chip Move Now Has to Go Perfectly
• Negative Sentiment: Technical/short‑term factors — overbought indicators and rapid profit‑taking after the 15–18% pop — are prompting a near‑term pullback as investors lock in gains and reassess execution risk. Arm Stock Just Entered Overbought Territory. Is It Too Late to Chase the Rally Here?

Analyst Ratings Changes

ARM has been the subject of a number of recent research reports. Rosenblatt Securities restated a “buy” rating and issued a $175.00 price objective on shares of ARM in a research note on Wednesday. UBS Group decreased their target price on shares of ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research report on Thursday, February 5th. Needham & Company LLC raised shares of ARM from a “hold” rating to a “buy” rating and set a $200.00 price target for the company in a research report on Thursday. Bank of America restated a “neutral” rating and set a $120.00 price target on shares of ARM in a research note on Tuesday, January 13th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a report on Wednesday, January 21st. Nineteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $168.17.

ARM Stock Down 1.4%

The stock has a fifty day simple moving average of $120.72 and a 200-day simple moving average of $134.17. The company has a market capitalization of $163.55 billion, a P/E ratio of 206.40, a PEG ratio of 9.31 and a beta of 4.11.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm’s quarterly revenue was up 26.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.39 EPS. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current fiscal year.

Institutional Trading of ARM

Several hedge funds have recently modified their holdings of ARM. Schroder Investment Management Group boosted its holdings in shares of ARM by 41.7% in the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock worth $767,611,000 after acquiring an additional 1,396,684 shares in the last quarter. Morgan Stanley increased its holdings in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after purchasing an additional 45,314 shares in the last quarter. Invesco Ltd. raised its position in ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after purchasing an additional 654,727 shares during the last quarter. Coatue Management LLC raised its position in ARM by 1.8% in the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after purchasing an additional 40,174 shares during the last quarter. Finally, Wellington Management Group LLP boosted its stake in ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after purchasing an additional 631,576 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

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.