Cetera Investment Advisers Reduces Stock Holdings in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Cetera Investment Advisers cut its ARM stake by 15.9% in the first quarter, selling 7,391 shares and retaining 39,008 shares valued at approximately $5.9 million. Other institutions, including State Street, increased their positions, while institutional investors collectively own 7.53% of ARM.
• ARM reported quarterly revenue of $1.29 billion, up 22.4% year over year, and earnings of $0.45 per share, exceeding analyst expectations. Growth was supported by stronger AI and data-center demand, though smartphone weakness and memory costs may constrain royalty growth.
• Analysts maintain a generally positive view, with 18 Buy ratings and an average “Moderate Buy” consensus, but price targets have been reduced by several firms. ARM’s elevated valuation— including a price-to-earnings ratio above 247—remains a key risk, alongside insider sales totaling $52.1 million over the past 90 days.

Cetera Investment Advisers reduced its position in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 15.9% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 39,008 shares of the company's stock after selling 7,391 shares during the quarter. Cetera Investment Advisers' holdings in ARM were worth $5,901,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Amundi grew its position in ARM by 24.8% during the first quarter. Amundi now owns 11,804 shares of the company's stock valued at $1,153,000 after buying an additional 2,345 shares during the period. Empowered Funds LLC raised its position in ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company's stock worth $522,000 after acquiring an additional 1,094 shares during the period. Schnieders Capital Management LLC. raised its position in ARM by 9.0% in the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company's stock worth $393,000 after acquiring an additional 200 shares during the period. Bank of Nova Scotia purchased a new position in shares of ARM during the 2nd quarter worth $556,000. Finally, State Street Corp boosted its stake in shares of ARM by 14.7% during the 2nd quarter. State Street Corp now owns 441,445 shares of the company's stock worth $71,399,000 after acquiring an additional 56,656 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company's stock.

Insiders Place Their Bets

In other news, insider William Abbey sold 6,566 shares of the business's stock in a transaction dated Monday, June 1st. The stock was 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. The trade was a 24.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charlotte Claire Eaton sold 7,805 shares of the company's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $290.01, for a total value of $2,263,528.05. Following the completion of the transaction, the insider directly owned 5,000 shares of the company's stock, valued at approximately $1,450,050. This trade represents a 60.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 216,049 shares of company stock valued at $52,101,605 in the last ninety days.

ARM Price Performance

Shares of NASDAQ ARM opened at $239.69 on Monday. The stock has a market cap of $256.01 billion, a PE ratio of 247.11, a price-to-earnings-growth ratio of 7.12 and a beta of 3.91. ARM Holdings PLC Sponsored ADR has a 1 year low of $100.02 and a 1 year high of $452.70. The firm has a fifty day moving average price of $328.64 and a 200-day moving average price of $213.62.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to analysts' expectations of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. ARM's revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.35 EPS. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on ARM shares. 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 note on Thursday. Morgan Stanley lifted their target price on ARM from $202.00 to $212.00 and gave the company an "equal weight" rating in a research report on Thursday. Benchmark assumed coverage on ARM in a report on Thursday, July 16th. They set a "hold" rating for the company. Raymond James Financial reissued an "outperform" rating on shares of ARM in a report on Thursday, May 7th. Finally, Wells Fargo & Company reduced their price target on ARM from $350.00 to $280.00 and set an "overweight" rating for the company in a research report on Thursday. Eighteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, ARM presently has an average rating of "Moderate Buy" and an average target price of $285.33.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal first-quarter revenue of $1.29 billion, up 22.4% year over year, and adjusted EPS of $0.45, beating analyst estimates. Management also issued second-quarter guidance above consensus, supported by rising AI and data-center demand. Arm shares jump after Q1 revenue, profit beat estimates
• Positive Sentiment: Data-center royalty revenue reportedly doubled, while demand for Arm’s AI-focused CPU and upcoming AGI CPU platform is strengthening. One report said customer demand for the AGI CPU has topped $2 billion, reinforcing the long-term AI infrastructure opportunity. ARM Q1 Earnings Call Highlights AI CPU Demand and Data Center Growth
• Positive Sentiment: Citi reiterated its Buy rating and $300 price target, saying Arm remains well positioned for long-term AI infrastructure growth despite weaker handset conditions. Arm remains key AI infrastructure beneficiary despite softer handset outlook
• Neutral Sentiment: Rosenblatt lowered its target to $250 while maintaining Buy; TD Cowen cut its target to $350 and RBC reduced its target to $340, although both retained positive ratings. Morgan Stanley raised its target to $212 but kept an Equal Weight rating.
• Negative Sentiment: Investors remain concerned that second-quarter royalty growth of roughly 13% will be restrained by smartphone weakness and memory-price pressures. These near-term concerns overshadowed the earnings beat for some shareholders. Memory Prices Hit Arm's Royalties as Stock Falls
• Negative Sentiment: Valuation remains a major risk: ARM has gained 110.5% year to date and trades at a very high earnings multiple. Analysts warn that continued gains require exceptional execution across AI servers, cloud, edge, and automotive markets, leaving the stock vulnerable if growth slows or the AGI CPU rollout disappoints.

ARM Company 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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