ARM (NASDAQ:ARM) Sees Large Volume Increase - Should You Buy?

Key Points

• Arm shares saw elevated trading activity, with 4.66 million shares changing hands on Wednesday, though that was down 40% from the prior session. The stock also jumped to about $254.71 from a previous close of $223.15.
• Analyst sentiment remains broadly positive, highlighted by Sanford C. Bernstein’s new outperform rating and $300 price target. Overall, ARM has 20 Buy ratings, six Holds, and one Sell, with a consensus “Moderate Buy” rating.
• Investors are weighing bullish momentum against regulatory risk, as reports of a U.S. antitrust probe and related securities-fraud investigations pressured the stock. Insider selling also added some caution, although the company said those sales were tied to vested equity awards and pre-arranged plans.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) saw an uptick in trading volume on Wednesday . 4,656,748 shares traded hands during trading, a decline of 40% from the previous session's volume of 7,799,453 shares.The stock last traded at $254.7070 and had previously closed at $223.15.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Sanford C. Bernstein initiated coverage on Arm with an outperform rating and a $300 price target, reinforcing the bullish case that Arm’s licensing model and CPU IP could benefit from a long-term “renaissance of CPUs.”
• Positive Sentiment: Recent commentary highlighted Arm’s strong run in 2026 and argued the stock still has room to run as investors keep favoring semiconductor design and AI-related names. Article: Arm Holdings Has Doubled in 2026. Is It Outperforming Other Chip-IP Stocks Like Synopsys, Cadence, and Qualcomm?
• Positive Sentiment: Another report said Arm is viewed as an attractive buy-on-pullback name, with some research desks pointing to the $210 to $215 area as a favored entry zone.
• Neutral Sentiment: Several insider sales were disclosed, including transactions by William Abbey and Richard Roy Grisenthwaite, but the company said they were tied to tax withholding from vested equity awards and pre-arranged 10b5-1 plans.
• Neutral Sentiment: Loomis Sayles mentioned Arm in an investor letter, but the reference was part of a broader portfolio discussion rather than a company-specific catalyst.
• Negative Sentiment: Yahoo Finance reported Arm fell on a reported U.S. antitrust probe, raising the risk of more regulatory scrutiny around Arm’s chip-licensing model. Article: Arm Falls on Reported US Antitrust Probe
• Negative Sentiment: Multiple law firms announced securities-fraud investigations tied to the antitrust-related news, adding uncertainty even though these are still early-stage probes. Article: Securities Fraud Investigation Into Arm Holdings plc (ARM) Announced

Analyst Ratings Changes

A number of research firms recently weighed in on ARM. New Street Research upgraded ARM from a "neutral" rating to a "buy" rating in a report on Thursday, February 5th. UBS Group decreased their price objective on ARM from $175.00 to $170.00 and set a "buy" rating for the company in a report on Thursday, February 5th. The Goldman Sachs Group raised their price target on shares of ARM from $125.00 to $150.00 and gave the stock a "sell" rating in a report on Thursday, May 7th. Mizuho raised their price target on shares of ARM from $230.00 to $255.00 and gave the stock an "outperform" rating in a report on Wednesday, May 6th. Finally, Rosenblatt Securities raised their price target on shares of ARM from $175.00 to $270.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Twenty research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $203.79.

ARM Stock Performance

The company has a market capitalization of $269.67 billion, a price-to-earnings ratio of 303.19, a P/E/G ratio of 7.81 and a beta of 3.40. The business has a 50 day moving average price of $168.98 and a 200-day moving average price of $140.99.

ARM (NASDAQ:ARM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. As a group, equities analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In related news, insider Spencer Collins sold 51,961 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the transaction, the insider directly owned 51,125 shares of the company's stock, valued at $10,824,696.25. This represents a 50.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of the stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares in the company, valued at approximately $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 168,589 shares of company stock valued at $31,508,607 over the last 90 days.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Capital Research Global Investors acquired a new stake in ARM in the third quarter valued at approximately $243,098,000. Northwestern Mutual Wealth Management Co. increased its position in shares of ARM by 2,623.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company's stock worth $182,743,000 after acquiring an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd bought a new stake in shares of ARM during the third quarter worth about $202,980,000. Employees Provident Fund Board purchased a new stake in ARM in the 4th quarter valued at $120,241,000. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company's stock worth $142,983,000 after acquiring an additional 872,644 shares in the last quarter. 7.53% of the stock is owned by institutional investors.

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.

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