Cibc World Market Inc. Buys 27,126 Shares of ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Cibc World Market Inc. increased its ARM stake by 17.5% in the fourth quarter, buying 27,126 additional shares and bringing its total holdings to 181,976 shares valued at about $19.9 million.
• ARM’s stock was down 12.8% on the day of the report, even though it was trading near $342.93 and remained far above its 12-month low, reflecting a very high valuation with a market cap of $362.31 billion.
• Analysts remain largely bullish: ARM has a Moderate Buy consensus with 20 Buy ratings, 6 Holds, and 1 Sell, and a consensus price target of $226.92, while insiders have also been selling shares recently.

Cibc World Market Inc. boosted its stake in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 17.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 181,976 shares of the company's stock after buying an additional 27,126 shares during the period. Cibc World Market Inc.'s holdings in ARM were worth $19,892,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. CIBC Asset Management Inc increased its position in ARM by 13.3% during the 4th quarter. CIBC Asset Management Inc now owns 25,220 shares of the company's stock valued at $2,757,000 after buying an additional 2,965 shares in the last quarter. Heritage Trust Co increased its position in ARM by 5.5% during the 4th quarter. Heritage Trust Co now owns 2,045 shares of the company's stock valued at $224,000 after buying an additional 107 shares in the last quarter. AXQ Capital LP bought a new position in ARM during the 4th quarter valued at approximately $362,000. Root Financial Partners LLC increased its position in ARM by 2,678.9% during the 4th quarter. Root Financial Partners LLC now owns 1,056 shares of the company's stock valued at $115,000 after buying an additional 1,018 shares in the last quarter. Finally, BNP Paribas increased its position in ARM by 36.3% during the 4th quarter. BNP Paribas now owns 13,425 shares of the company's stock valued at $1,468,000 after buying an additional 3,573 shares in the last quarter. Institutional investors own 7.53% of the company's stock.

ARM Trading Down 12.8%

ARM stock opened at $342.93 on Friday. The firm has a market cap of $362.31 billion, a price-to-earnings ratio of 408.25, a PEG ratio of 14.29 and a beta of 3.78. The stock has a fifty day simple moving average of $224.64 and a two-hundred day simple moving average of $157.98. ARM Holdings PLC Sponsored ADR has a 12 month low of $100.02 and a 12 month high of $427.99.

ARM (NASDAQ:ARM - Get Free Report) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The business 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%. On average, equities research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Jason Child sold 31,920 shares of ARM stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the sale, the chief financial officer owned 174,232 shares of the company's stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. The sale was disclosed in a legal 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 Charlotte Claire Eaton sold 4,000 shares of ARM stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $282.77, for a total value of $1,131,080.00. Following the completion of the sale, the insider directly owned 7,805 shares of the company's stock, valued at $2,207,019.85. The trade was a 33.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 301,338 shares of company stock worth $66,030,158 in the last 90 days.

Wall Street Analyst Weigh In

ARM has been the subject of a number of analyst reports. Sanford C. Bernstein initiated coverage on ARM in a research report on Monday, May 18th. They set an "outperform" rating and a $300.00 price objective for the company. Wells Fargo & Company raised their price objective on ARM from $255.00 to $410.00 and gave the company an "overweight" rating in a research report on Monday. Raymond James Financial reaffirmed an "outperform" rating on shares of ARM in a research report on Thursday, May 7th. HSBC raised ARM from a "reduce" rating to a "buy" rating and raised their price objective for the company from $90.00 to $205.00 in a research report on Friday, March 20th. Finally, Royal Bank Of Canada lifted their target price on ARM from $175.00 to $260.00 and gave the stock an "outperform" rating in a report on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $226.92.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm is gaining credibility as a key AI infrastructure player after management said customers including ByteDance and Oracle are using Arm-based CPUs in data centers, supporting the case for stronger licensing and royalty growth. Arm names ByteDance and Oracle as users of its AI data centre CPUs
• Positive Sentiment: Arm is also benefiting from NVIDIA’s latest AI PC and data-center push, which reinforces demand for Arm’s architecture and could boost future adoption across the semiconductor ecosystem. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Neutral Sentiment: Recent insider sales by executives, including William Abbey and CAO Laura Kathleen Bartels, may attract attention, but they do not appear large enough on their own to change the company’s fundamentals. SEC insider filing SEC insider filing
• Neutral Sentiment: Broader market commentary notes that the AI trade may be cooling after a strong run, which could keep pressure on high-valuation chip names like Arm even if the growth story remains strong. Markets Rally, But Tech Stocks Get Left Behind as the AI Trade Falters
• Negative Sentiment: Arm’s valuation is being called stretched after a massive rally, and chip-sector weakness following Broadcom’s disappointing results is adding to the risk of a pullback. 2 Chip Stocks Extending Slide After Broadcom Earnings Bust

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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