Arm Holdings PLC Sponsored ADR $ARM Stock: Convergence Financial LLC Reduces Stake

Key Points

• Convergence Financial LLC cut its ARM stake by 53.4% in the third quarter, selling 5,279 shares and retaining 4,615 shares valued at approximately $1.34 million.
• Institutional sentiment was mixed: several large investors increased their positions, while CFO Jason Child sold 10,400 shares for $3.12 million under a pre-arranged Rule 10b5-1 plan. Institutional investors and hedge funds collectively own 7.53% of ARM.
• ARM recently exceeded quarterly earnings and revenue expectations, with revenue up 22.4% year over year, but its valuation remains elevated; shares traded near $235.90 and analysts maintained a “Moderate Buy” consensus with an average price target of $303.32.

Convergence Financial LLC lessened its holdings in Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 53.4% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 4,615 shares of the company's stock after selling 5,279 shares during the period. Convergence Financial LLC's holdings in ARM were worth $1,337,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership lifted its stake in ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company's stock valued at $142,983,000 after purchasing an additional 872,644 shares during the last quarter. Janus Henderson Group PLC acquired a new stake in ARM in the first quarter valued at approximately $116,112,000. Hyperion Asset Management Ltd grew its stake in shares of ARM by 36.9% during the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company's stock worth $210,662,000 after buying an additional 195,942 shares during the last quarter. Altshuler Shaham Ltd grew its stake in shares of ARM by 202.6% during the first quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company's stock worth $72,356,000 after buying an additional 320,236 shares during the last quarter. Finally, Sei Investments Co. increased its holdings in shares of ARM by 67.5% during the first quarter. Sei Investments Co. now owns 454,220 shares of the company's stock worth $68,714,000 after buying an additional 183,045 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company's stock.

Insider Buying and Selling

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

ARM Price Performance

Shares of ARM stock opened at $235.90 on Thursday. The business's 50 day simple moving average is $260.04 and its 200 day simple moving average is $226.86. Arm Holdings PLC Sponsored ADR has a one year low of $100.02 and a one year high of $452.70. The stock has a market capitalization of $251.96 billion, a PE ratio of 243.20, a PEG ratio of 6.24 and a beta of 3.78.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm posted $0.35 EPS. The company's revenue for the quarter was up 22.4% compared to the same quarter last year. As a group, research analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: An earnings preview argues that Arm’s Q2 results could help restore confidence if the company delivers solid revenue growth, licensing activity and forward guidance. Arm’s licensing model and exposure to expanding AI and data-center markets remain key potential catalysts. Why Arm’s Q2 earnings could spur a recovery in its stock
• Positive Sentiment: A comparison with Western Digital highlights Arm’s dominant chip-architecture position, high-margin royalty and licensing structure, and growing data-center presence as reasons it may remain an attractive long-term technology investment. Arm vs. Western Digital: Which Tech Stock Is the Better Buy in November?
• Neutral Sentiment: A separate comparison favors Coherent over Arm for near-term upside, citing Coherent’s AI-driven optical-networking demand and more favorable valuation. The article nevertheless recognizes Arm’s strategic importance and long-term growth potential. Coherent vs. Arm Holdings: Which Tech Stock Offers More Upside Now?
• Neutral Sentiment: Articles about a giant animated arm appearing in X’s post composer concern a platform interface feature and do not appear related to Arm Holdings or its business. Why Is a Giant Arm Appearing to Point X Users?
• Negative Sentiment: An earnings preview warns that Arm’s valuation remains difficult to justify. With a very elevated earnings multiple, the stock could face pressure if Q2 results or guidance fail to exceed already-high expectations. Arm: The Price Tag Remains Far Too Steep

Analyst Ratings Changes

A number of research analysts have recently commented on ARM shares. Morgan Stanley increased their price target on ARM from $202.00 to $212.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Raymond James Financial reaffirmed an "outperform" rating and issued a $166.00 price objective on shares of ARM in a research note on Tuesday, August 25th. Benchmark initiated coverage on shares of ARM in a report on Thursday, July 16th. They issued a "hold" rating for the company. Royal Bank Of Canada cut their target price on shares of ARM from $475.00 to $340.00 and set an "outperform" rating on the stock in a research report on Thursday, July 30th. Finally, Wells Fargo & Company cut their target price on shares of ARM from $350.00 to $280.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $303.32.

ARM Company 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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