ARM Holdings PLC Sponsored ADR $ARM Shares Sold by Renaissance Capital LLC

Key Points

• Renaissance Capital LLC cut its stake in ARM by 32.9%, selling 34,247 shares and leaving it with 69,843 shares worth about $7.64 million, making ARM its 5th largest holding (≈5.5% of the fund).
• ARM beat Q1 estimates with $0.43 EPS (vs. $0.41 expected) and revenue of $1.24 billion (up 26.3% YoY), but the stock trades at a stretched valuation (market cap ≈$248B, P/E ~313) and carries a consensus price target of $174.83, below recent prices.
• Significant insider selling has occurred recently: the CFO sold 21,280 shares and the CEO sold 23,867 shares (insiders sold 83,712 shares worth about $13.6 million over the past three months), which may be viewed negatively by some investors.

Renaissance Capital LLC lessened its stake in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 32.9% in the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 69,843 shares of the company's stock after selling 34,247 shares during the quarter. ARM comprises about 5.5% of Renaissance Capital LLC's portfolio, making the stock its 5th largest holding. Renaissance Capital LLC's holdings in ARM were worth $7,635,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. Pacific Heights Asset Management LLC lifted its stake in shares of ARM by 32.1% during the 3rd quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company's stock worth $26,176,000 after buying an additional 45,000 shares during the last quarter. Paragon Capital Management Inc. acquired a new stake in shares of ARM during the 4th quarter worth about $826,000. Stanley Laman Group Ltd. acquired a new stake in shares of ARM during the 3rd quarter worth about $6,219,000. Lansdowne Partners UK LLP acquired a new stake in shares of ARM during the 3rd quarter worth about $8,486,000. Finally, Hyperion Asset Management Ltd acquired a new stake in shares of ARM during the 3rd quarter worth about $202,980,000. Institutional investors and hedge funds own 7.53% of the company's stock.

ARM Price Performance

Shares of ARM stock opened at $234.81 on Monday. ARM Holdings PLC Sponsored ADR has a twelve month low of $100.02 and a twelve month high of $237.68. The stock has a market capitalization of $248.08 billion, a price-to-earnings ratio of 313.08, a price-to-earnings-growth ratio of 10.58 and a beta of 3.33. The company has a 50-day simple moving average of $142.19 and a two-hundred day simple moving average of $136.21.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period last year, the firm earned $0.39 EPS. The business's quarterly revenue was up 26.3% compared to the same quarter last year. On average, sell-side analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.85 earnings per share for the current fiscal year.

Insider Activity

In other ARM news, CFO Jason Child sold 21,280 shares of the firm's stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total value of $3,157,313.60. Following the transaction, the chief financial officer directly owned 174,706 shares of the company's stock, valued at $25,921,129.22. This trade represents a 10.86% decrease in their position. The transaction was disclosed in a 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 firm's stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of 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. Over the last three months, insiders sold 83,712 shares of company stock worth $13,614,730.

Analyst Upgrades and Downgrades

ARM has been the subject of several analyst reports. Guggenheim lifted their price objective on shares of ARM from $201.00 to $240.00 and gave the stock a "buy" rating in a research note on Wednesday, March 25th. Oddo Bhf set a $170.00 price objective on shares of ARM in a research note on Monday, January 5th. The Goldman Sachs Group lifted their price objective on shares of ARM from $110.00 to $125.00 and gave the stock a "sell" rating in a research note on Thursday, April 9th. Weiss Ratings reiterated a "hold (c)" rating on shares of ARM in a research note on Monday, April 20th. Finally, TD Cowen dropped their price objective on shares of ARM from $190.00 to $165.00 and set a "buy" rating for the company in a research note on Thursday, February 5th. Eighteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $174.83.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Sector tailwind — Intel’s blowout Q1 results lifted chip stocks across the board, giving ARM momentum as investors rotate into AI/CPU names. Intel Post‑Earnings Rally
• Positive Sentiment: Product catalyst — Arm unveiled an AGI CPU with 136 Neoverse V3 cores targeting agentic AI workloads, a material step toward higher‑performance IP and in‑house silicon revenue opportunities. Arm AGI CPU
• Positive Sentiment: Faster customer adoption — AMI firmware validation for Arm AGI platforms reduces integration friction and could speed deployment, supporting earlier revenue recognition for new silicon. AMI Firmware Validation
• Positive Sentiment: Investor and analyst support — Susquehanna raised its target and high‑profile investors/media (Bill Baruch, Jim Cramer) have publicly bought/recommended ARM, boosting retail and institutional interest. Price Target Raise Bill Baruch Buys Jim Cramer
• Neutral Sentiment: Momentum ahead of earnings — stock hit all‑time highs entering Q1 results; that reflects optimism but raises expectations and the risk of a post‑earnings pullback. All‑Time High Ahead of Q1
• Neutral Sentiment: Visibility vs. fundamentals — coverage pieces and idea features increase attention but don’t change near‑term fundamentals; debate over valuation is growing. Zacks Feature Valuation Debate
• Negative Sentiment: Insider selling — CFO Jason Child sold 21,280 shares under a pre‑arranged 10b5‑1 plan; while routine and disclosed, insider sales can be perceived negatively by some investors. CFO Sale Filing
• Negative Sentiment: Competitive and execution risk — analyst comparisons favoring peers (e.g., Coherent) highlight that faster near‑term AI datacenter growth by rivals could pressure relative performance. Cohr vs ARM

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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