ARM (NASDAQ:ARM) Trading Down 12.8% on Insider Selling

Key Points

• ARM shares fell 12.8% after insider selling, with the stock dropping to as low as $337.55 and trading well above average volume. The move came despite the company’s strong recent run and reflects heightened volatility.
• Several insiders sold stock, including CAO Laura Kathleen Bartels and insider William Abbey, with filings showing meaningful reductions in their holdings. These sales may have added to investor caution around the name.
• Analysts remain broadly positive on ARM, with multiple firms maintaining or raising targets and the consensus rating still at Moderate Buy. At the same time, the stock’s rich valuation and weakness in the broader chip sector are keeping pressure on sentiment.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price traded down 12.8% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $337.55 and last traded at $342.93. 14,690,246 shares traded hands during mid-day trading, an increase of 71% from the average session volume of 8,594,021 shares. The stock had previously closed at $393.44.

Specifically, CAO Laura Kathleen Bartels sold 11,306 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares in the company, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider William Abbey sold 6,566 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the transaction, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. This trade represents a 24.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other news, 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 completion of the sale, the insider directly owned 27,129 shares in the company, valued at $9,327,221.49. This represents a 13.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analyst Ratings Changes

A number of brokerages recently commented on ARM. Jefferies Financial Group set a $290.00 price objective on ARM in a research report on Thursday, May 21st. Royal Bank Of Canada upped their target price on ARM from $175.00 to $260.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. New Street Research raised ARM from a "neutral" rating to a "buy" rating in a research note on Thursday, February 5th. Barclays boosted their price target on shares of ARM from $250.00 to $360.00 and gave the company an "overweight" rating in a research report on Monday. Finally, Evercore dropped their price objective on shares of ARM from $215.00 to $170.00 and set an "outperform" rating for the company in a report on Thursday, February 5th. Twenty investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $226.92.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm is being linked to Nvidia’s expanded AI PC and data-center push, which supports the case that demand for Arm’s architecture could keep growing and lift future licensing and royalty revenue. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Reports that Arm’s AI chip ambitions may be advancing faster than expected reinforce optimism that the company’s AI opportunity could scale sooner than Wall Street had assumed. Arm's $15 Billion AI Chip Target May Arrive Early
• Positive Sentiment: Arm said major customers such as ByteDance and Oracle are using its AI data-center CPUs, adding credibility to its push into AI infrastructure. Arm names ByteDance and Oracle as users of its AI data centre CPUs
• Neutral Sentiment: Recent insider sales, including trades by William Abbey and CAO Laura Kathleen Bartels, may make some investors cautious, but they do not by themselves signal a change in Arm’s operating outlook. SEC insider filing SEC insider filing
• Neutral Sentiment: Arm’s stock has also attracted attention because of its very large recent rally and rich valuation, which leaves it vulnerable to volatility if AI enthusiasm cools. ARM Shares Surge 270% in 2026: Buy, Hold, or Wait for a Pullback?
• Negative Sentiment: The broader chip sector is under pressure after Broadcom’s disappointing earnings, and that weakness is weighing on semiconductor names including Arm. 2 Chip Stocks Extending Slide After Broadcom Earnings Bust
• Negative Sentiment: Barron’s highlighted that Arm insiders sold millions of dollars of stock ahead of the latest rally, which can add to investor concern about insiders cashing out near highs. Arm Insiders Sold $25.6 Million in Stock. They Missed a Historic Rally.

ARM Stock Down 12.8%

The stock has a 50-day simple moving average of $220.92 and a 200 day simple moving average of $156.68. The company has a market cap of $362.31 billion, a PE ratio of 408.25, a P/E/G ratio of 14.96 and a beta of 3.78.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business 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%. As a group, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ARM

A number of institutional investors have recently made changes to their positions in ARM. Morgan Stanley lifted its holdings in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company's stock worth $413,521,000 after acquiring an additional 45,314 shares during the last quarter. Invesco Ltd. increased its holdings 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 increased its holdings 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. Wellington Management Group LLP raised its position in ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company's stock valued at $234,925,000 after purchasing an additional 631,576 shares during the period. Finally, Schroder Investment Management Group lifted its stake in ARM by 11.0% during the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company's stock worth $206,739,000 after purchasing an additional 187,035 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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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