Capital World Investors Lowers Position in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Capital World Investors trimmed its ARM stake, selling 175,845 shares in Q3 (-3.6%) and ending the quarter with 4,772,592 shares (≈0.45% of ARM) worth about $675.3 million.
• Several other institutional investors notably increased or initiated positions—Sustainable Growth Advisers (+116.8%), Schroder (+41.7%), Invesco (+139.9%) and new stakes from Baillie Gifford and 1832 Asset Management—while institutional ownership sits at about 7.53%.
• Analysts are mixed but the consensus is a "Moderate Buy" with a $160.81 price target; ARM recently beat EPS estimates ($0.43 vs. $0.41) on $1.24B revenue (up 26.3% YoY) and has a market cap near $127.4 billion.

Capital World Investors lessened its holdings in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 3.6% during the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 4,772,592 shares of the company's stock after selling 175,845 shares during the quarter. Capital World Investors owned about 0.45% of ARM worth $675,274,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Sustainable Growth Advisers LP grew its stake in shares of ARM by 116.8% during the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company's stock valued at $559,171,000 after acquiring an additional 1,862,626 shares during the period. Schroder Investment Management Group lifted its holdings in ARM by 41.7% during the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company's stock valued at $767,611,000 after purchasing an additional 1,396,684 shares in the last quarter. Invesco Ltd. boosted its position in shares of ARM by 139.9% in the second quarter. Invesco Ltd. now owns 1,381,906 shares of the company's stock worth $223,509,000 after purchasing an additional 805,886 shares during the period. Baillie Gifford & Co. purchased a new stake in shares of ARM in the third quarter worth $90,678,000. Finally, 1832 Asset Management L.P. bought a new stake in shares of ARM during the 2nd quarter valued at $65,294,000. 7.53% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Rosenblatt Securities dropped their target price on shares of ARM from $180.00 to $175.00 and set a "buy" rating for the company in a report on Thursday, February 5th. The Goldman Sachs Group downgraded ARM from a "neutral" rating to a "sell" rating and lowered their price objective for the company from $160.00 to $120.00 in a research report on Monday, December 15th. Royal Bank Of Canada dropped their price objective on ARM from $140.00 to $130.00 and set an "outperform" rating for the company in a research note on Thursday, February 5th. Weiss Ratings reiterated a "hold (c)" rating on shares of ARM in a research report on Wednesday, January 21st. Finally, Benchmark reissued a "hold" rating on shares of ARM in a report on Thursday, February 5th. Sixteen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $160.81.

ARM Stock Up 2.5%

NASDAQ ARM opened at $120.55 on Wednesday. The firm has a market capitalization of $127.36 billion, a price-to-earnings ratio of 160.73, a PEG ratio of 8.12 and a beta of 4.11. ARM Holdings PLC Sponsored ADR has a 52 week low of $80.00 and a 52 week high of $183.16. The company has a fifty day moving average of $116.92 and a two-hundred day moving average of $134.80.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings results on Wednesday, February 4th. The company reported $0.43 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.02. The firm had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The business's revenue for the quarter was up 26.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. Equities research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.