ARM (NASDAQ:ARM) Shares Down 4.8% - Should You Sell?

Key Points

• Shares fell 4.8% to $102.66 on Wednesday with volume of ~1.46M shares (down 71% vs. average), and the stock is trading below its 50‑day ($128.46) and 200‑day ($143.24) moving averages.
• Analyst sentiment is broadly positive — MarketBeat shows a consensus rating of "Moderate Buy" with an average price target of $176.71, and recent target raises from firms like JPMorgan (to $180) and Mizuho (to $190).
• Fundamentals: ARM beat Q3 estimates (EPS $0.39 vs. $0.33; revenue $1.14B vs. $1.06B; revenue +34.5% YoY) but carries a high valuation (PE ≈132.99) and offered Q3 2026 guidance of $0.37–$0.45 EPS.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares were down 4.8% during trading on Wednesday . The company traded as low as $102.92 and last traded at $102.6620. Approximately 1,461,214 shares traded hands during trading, a decline of 71% from the average daily volume of 4,979,093 shares. The stock had previously closed at $107.84.

Analysts Set New Price Targets

ARM has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price objective on shares of ARM from $175.00 to $180.00 and gave the stock an "overweight" rating in a report on Thursday, November 6th. Mizuho raised their price objective on ARM from $180.00 to $190.00 and gave the company an "outperform" rating in a research report on Thursday, November 6th. Raymond James Financial started coverage on shares of ARM in a report on Friday, November 21st. They set a "hold" rating on the stock. Rosenblatt Securities reiterated a "buy" rating and issued a $180.00 price target on shares of ARM in a research note on Thursday, November 6th. Finally, Oddo Bhf set a $170.00 price objective on shares of ARM in a report on Monday, January 5th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $176.71.

ARM Trading Down 4.0%

The business's 50 day simple moving average is $128.46 and its two-hundred day simple moving average is $143.24. The firm has a market capitalization of $109.35 billion, a PE ratio of 132.99, a price-to-earnings-growth ratio of 6.66 and a beta of 4.34.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.33 by $0.06. The company had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.ARM's revenue was up 34.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.30 earnings per share. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. As a group, equities research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Institutional Trading of ARM

Several hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its position in shares of ARM by 126.0% during the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company's stock valued at $25,000 after buying an additional 97 shares in the last quarter. Grey Fox Wealth Advisors LLC bought a new stake in ARM during the 3rd quarter worth approximately $28,000. Huntington National Bank purchased a new position in ARM during the second quarter valued at approximately $30,000. FWL Investment Management LLC bought a new position in shares of ARM in the second quarter worth approximately $34,000. Finally, Oliver Lagore Vanvalin Investment Group purchased a new stake in shares of ARM in the second quarter worth $39,000. Institutional investors 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.

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