ARM (NASDAQ:ARM) Shares Down 7.9% on Insider Selling

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 7.9% on Thursday following insider selling activity. The stock traded as low as $303.65 and last traded at $306.34. Approximately 9,455,919 shares changed hands during trading, an increase of 21% from the average daily volume of 7,800,315 shares. The stock had previously closed at $332.56.

Specifically, CFO Jason Child sold 10,400 shares of the 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 sale, the chief financial officer directly owned 153,442 shares of the company’s stock, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several research analysts recently issued reports on ARM shares. New Street Research raised ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price on the stock in a research report on Thursday, July 30th. TD Cowen dropped their price objective on ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and set a $255.00 price objective on shares of ARM in a report on Thursday, July 30th. Morgan Stanley upped their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Finally, Wells Fargo & Company dropped their price target on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $305.72.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm remains positioned to benefit from the expansion of agentic AI and data-center workloads. More AI agents could require substantially greater CPU capacity, potentially driving higher processor royalties and supporting management’s ambition to exceed its $2 billion AGI CPU revenue target. Critical Role of ARM Holdings in Powering the Next Wave of Agentic AI
• Positive Sentiment: Arm’s processor designs are increasingly important to custom AI chips and hyperscale infrastructure. The potential expansion of Meta’s Muse chip program and broader investor confidence in Arm’s data-center royalty opportunity reinforce the long-term growth narrative. Prediction: Arm Is Our Top Pick With 83% Upside
• Neutral Sentiment: Tran Capital Management highlighted Arm as a key holding in its growth strategy, reflecting institutional interest in the company’s AI exposure. However, the commentary does not represent a new contract, forecast, or operating update from Arm. Critical Role of ARM Holdings in Powering the Next Wave of Agentic AI
• Negative Sentiment: Investors are questioning whether higher server-core demand will translate into proportionally higher revenue. Arm’s results depend on its architecture share, the mix of chips using its designs, and royalty rates—not simply the number of CPU cores shipped. Arm Drops as More AI Cores Test Royalty Economics
• Negative Sentiment: Valuation is a significant pressure point. With the stock trading at exceptionally high forward and trailing earnings multiples after a substantial rally, some analysts argue that much of the AI-driven growth is already priced in, leaving limited room for execution disappointments. Arm Holdings AI-Driven Melt-Up Overly Done
• Negative Sentiment: CFO Jason Child sold 10,400 shares worth approximately $3.12 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but it nevertheless adds modest selling pressure and investor caution. ARM CFO Jason Child Sells Shares

ARM Stock Down 7.9%

The firm has a market cap of $327.20 billion, a PE ratio of 315.82, a PEG ratio of 9.88 and a beta of 3.89. The company has a 50-day simple moving average of $262.29 and a two-hundred day simple moving average of $252.38.

ARM (NASDAQ:ARM) last released its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The business’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.35 EPS. As a group, equities analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Hedge Funds Weigh In On ARM

Several institutional investors and hedge funds have recently bought and sold shares of ARM. Syntax Research Inc. bought a new stake in shares of ARM in the first quarter valued at $30,000. Evelyn Partners Investment Management Services Ltd bought a new position in shares of ARM during the 1st quarter worth $30,000. Motiv8 Investments LLC purchased a new stake in ARM in the 4th quarter worth about $38,000. Cassaday & Co Wealth Management LLC purchased a new stake in ARM in the 1st quarter worth about $40,000. Finally, Sterling Capital Management LLC raised its stake in ARM by 1,400.0% in the 1st quarter. Sterling Capital Management LLC now owns 375 shares of the company’s stock valued at $57,000 after acquiring an additional 350 shares during the period. 7.53% of the stock is owned by institutional investors.

ARM Company Profile

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.