ARM (NASDAQ:ARM) Shares Gap Down on Insider Selling

Key Points

• ARM shares gapped down after an insider sale, opening at $380.41 versus the prior close of $411.83 and trading lower in early activity.
• Insider William Abbey disclosed two recent sales totaling 10,766 shares, reducing his position by 24.20% and 13.41% in separate transactions.
• Despite the selloff, Wall Street sentiment remains broadly positive, with 20 Buy ratings and an average analyst target price of $226.92.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price gapped down prior to trading on Thursday after an insider sold shares in the company. The stock had previously closed at $411.83, but opened at $380.41. ARM shares last traded at $368.5440, with a volume of 2,448,091 shares traded.

Specifically, insider William Abbey sold 6,566 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares of the company's stock, valued at $8,281,131.36. The trade was a 24.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider William Abbey sold 4,200 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $343.81, for a total value of $1,444,002.00. Following the transaction, the insider directly owned 27,129 shares in the company, valued at approximately $9,327,221.49. This trade represents a 13.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

Several research firms have recently commented on ARM. Weiss Ratings restated a "hold (c)" rating on shares of ARM in a report on Monday, April 20th. Raymond James Financial reissued an "outperform" rating on shares of ARM in a research report on Thursday, May 7th. UBS Group lowered their price objective on shares of ARM from $175.00 to $170.00 and set a "buy" rating on the stock in a report on Thursday, February 5th. Sanford C. Bernstein assumed coverage on shares of ARM in a report on Monday, May 18th. They set an "outperform" rating and a $300.00 price objective for the company. Finally, Needham & Company LLC upped their target price on shares of ARM from $200.00 to $255.00 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 MarketBeat, ARM presently has an average rating of "Moderate Buy" and an average target price of $226.92.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm is being highlighted as a beneficiary of NVIDIA’s new Arm-based AI PC and data-center push, which reinforces demand for Arm’s architecture and could support future licensing and royalty growth. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Reports that stronger AI demand could pull forward Arm’s own-chip sales target suggest the company’s AI opportunity may be expanding faster than expected. Arm's $15 Billion AI Chip Target May Arrive Early
• Positive Sentiment: Arm naming ByteDance and Oracle as users of its AI data-center CPUs adds credibility to its infrastructure strategy and broadens its customer roster. Arm names ByteDance and Oracle as users of its AI data centre CPUs
• Neutral Sentiment: Insider William Abbey disclosed another share sale, which may create some caution, but it appears small relative to Arm’s recent rally and is unlikely to be the main driver. SEC insider filing
• Negative Sentiment: Some commentary warns that Arm’s sharp run has pushed valuation to demanding levels, raising the risk of a pullback if AI growth disappoints or sentiment cools. ARM Shares Surge 270% in 2026: Buy, Hold, or Wait for a Pullback?

ARM Stock Performance

The company's 50 day simple moving average is $215.75 and its 200 day simple moving average is $154.89. The stock has a market cap of $394.20 billion, a PE ratio of 447.31, a price-to-earnings-growth ratio of 14.63 and a beta of 3.78.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The company had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. Equities research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current year.

Institutional Investors Weigh In On ARM

Hedge funds have recently made changes to their positions in the business. Syntax Research Inc. bought a new position in ARM during the first quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd bought a new position in shares of ARM during the 1st quarter valued at approximately $30,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of ARM during the 4th quarter worth approximately $30,000. Navalign LLC bought a new stake in shares of ARM in the 4th quarter worth approximately $33,000. Finally, FWL Investment Management LLC purchased a new position in ARM in the second quarter valued at approximately $34,000. 7.53% of the stock is currently owned by institutional investors.

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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