Capital World Investors Sells 3,606,816 Shares of ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Capital World Investors cut its ARM position by 75.6% in the fourth quarter, selling 3,606,816 shares and leaving it with 1,165,776 shares worth about $127.4 million.
• Insider selling has also been active, including recent sales by CFO Jason Child and insider William Abbey; over the last 90 days, insiders have sold 301,338 shares valued at about $66.0 million.
• Wall Street remains broadly upbeat on ARM, with analysts assigning a consensus “Moderate Buy” rating and an average price target of $230.04, even after several firms raised their targets.

Capital World Investors reduced its position in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 75.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,165,776 shares of the company's stock after selling 3,606,816 shares during the quarter. Capital World Investors owned 0.11% of ARM worth $127,431,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Navalign LLC bought a new stake in shares of ARM in the fourth quarter valued at about $33,000. FWL Investment Management LLC bought a new stake in shares of ARM in the second quarter valued at about $34,000. Strategic Investment Solutions Inc. IL raised its holdings in shares of ARM by 238.1% in the third quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company's stock valued at $40,000 after acquiring an additional 200 shares in the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA bought a new stake in shares of ARM in the fourth quarter valued at about $43,000. Finally, WFA of San Diego LLC bought a new stake in shares of ARM in the second quarter valued at about $49,000. 7.53% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, CFO Jason Child sold 31,920 shares of the company's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the transaction, the chief financial officer directly owned 174,232 shares of the company's stock, valued at $39,470,517.28. This represents a 15.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William Abbey sold 6,566 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the transaction, the insider directly owned 20,563 shares in the company, valued at $8,281,131.36. This represents a 24.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 301,338 shares of company stock valued at $66,030,158.

Analyst Ratings Changes

Several research firms recently weighed in on ARM. Sanford C. Bernstein began coverage on ARM in a report on Monday, May 18th. They issued an "outperform" rating and a $300.00 price objective for the company. Royal Bank Of Canada lifted their price objective on ARM from $175.00 to $260.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. Susquehanna boosted their price target on ARM from $170.00 to $210.00 and gave the stock a "positive" rating in a research report on Thursday, April 16th. Mizuho upped their price objective on ARM from $425.00 to $500.00 and gave the stock an "outperform" rating in a research note on Monday. Finally, Morgan Stanley restated an "equal weight" rating and set a $150.00 price objective (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. 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 an average target price of $230.04.

ARM Price Performance

Shares of NASDAQ ARM opened at $346.39 on Tuesday. The stock has a market capitalization of $369.97 billion, a P/E ratio of 412.37, a price-to-earnings-growth ratio of 12.45 and a beta of 3.77. ARM Holdings PLC Sponsored ADR has a 1-year low of $100.02 and a 1-year high of $427.99. The business has a fifty day moving average price of $228.47 and a 200 day moving average price of $159.59.

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

ARM 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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