Arm Holdings PLC Sponsored ADR $ARM Stock: AIA Group Ltd Trims Position

Key Points

• AIA Group cut its ARM stake by 59.6% in the third quarter, selling 10,794 shares and retaining 7,320 shares valued at about $2.12 million.
• ARM reported quarterly revenue of $1.44 billion, up 27.1% year over year, and EPS of $0.52, beating analyst estimates of $1.38 billion and $0.48, respectively.
• Analysts maintain a “Moderate Buy” consensus rating and an average price target of $299.32, though the article flags valuation concerns after the stock’s substantial multi-year rise.

AIA Group Ltd lowered its position in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 59.6% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 7,320 shares of the company's stock after selling 10,794 shares during the period. AIA Group Ltd's holdings in ARM were worth $2,120,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also recently added to or reduced their stakes in the company. Kings Path Partners LLC purchased a new position in ARM in the third quarter worth approximately $29,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM in the first quarter valued at approximately $30,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of ARM in the 1st quarter worth $40,000. Sterling Capital Management LLC lifted its holdings in ARM by 1,400.0% in the first quarter. Sterling Capital Management LLC now owns 375 shares of the company's stock valued at $57,000 after acquiring an additional 350 shares during the period. Finally, CX Institutional purchased a new position in ARM in the third quarter valued at about $58,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on ARM shares. Guggenheim restated a "buy" rating and issued a $255.00 price target on shares of ARM in a research report on Thursday, July 30th. New Street Research upgraded ARM from a "neutral" rating to a "buy" rating and set a $260.00 price objective for the company in a research report on Thursday, July 30th. Barclays reissued an "overweight" rating on shares of ARM in a research report on Thursday. Weiss Ratings reissued a "hold (c)" rating on shares of ARM in a research note on Thursday, October 15th. Finally, Benchmark started coverage on shares of ARM in a research report on Thursday, July 16th. They set a "hold" rating on the stock. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, ARM currently has an average rating of "Moderate Buy" and a consensus price target of $299.32.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Fiscal Q2 revenue rose 27% year over year to $1.44 billion, beating analyst estimates; the commonly cited EPS figure of $0.52 also topped the $0.48 consensus. Data-center royalties more than doubled, reflecting demand for Arm technology in AI infrastructure. Arm Shares Slip Despite Q2 Double-Beat: Details
• Positive Sentiment: Arm forecast third-quarter revenue above analyst expectations, citing the AI-spending boom. The company also said Amazon’s Graviton-related revenue commitments increased more than 20-fold year over year, and that its chips power over half of hyperscaler servers—signals of expanding adoption. Arm forecasts third-quarter revenue above estimates on AI spending boom Amazon Graviton commitments
• Neutral Sentiment: AI and data-center demand are strengthening Arm’s growth outlook, but valuation remains a concern after a major multi-year share-price run. That leaves the stock vulnerable if investors conclude growth is not sufficient to justify expectations. Arm stock valuation after its run
• Negative Sentiment: Despite the quarterly beat and upbeat forecast, shares declined following the report. One article highlighted a nearly 75% profit miss, suggesting that profitability measures may have disappointed even as the headline EPS and revenue figures beat estimates; this mixed picture may have prompted investors to sell into the results. Arm Q2 2027 earnings: revenue beats, but profit misses Arm beats quarterly targets, but stock falls

ARM Stock Performance

ARM opened at $191.80 on Thursday. Arm Holdings PLC Sponsored ADR has a 1 year low of $100.02 and a 1 year high of $452.70. The company's 50 day simple moving average is $256.08 and its 200 day simple moving average is $229.28. The stock has a market capitalization of $204.86 billion, a PE ratio of 197.73, a P/E/G ratio of 5.91 and a beta of 3.93.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.48 by $0.04. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the business posted $0.39 earnings per share. ARM's revenue for the quarter was up 27.1% compared to the same quarter last year. As a group, sell-side analysts expect that Arm Holdings PLC Sponsored ADR will post 1.17 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

In other ARM news, CFO Jason Child sold 10,400 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ARM Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company's offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.

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