Congress Asset Management Co. Sells 19,923 Shares of Arm Holdings PLC Sponsored ADR $ARM

Key Points

• Congress Asset Management reduced its ARM position by 4.9%, selling 19,923 shares and retaining 389,126 shares valued at approximately $112.7 million. Institutional investors collectively own 7.53% of the company.
• Analysts maintain a generally positive outlook, with ARM holding a consensus “Moderate Buy” rating and an average price target of $303.32, despite several recent target-price cuts and increases.
• ARM’s CFO sold 10,400 shares for $3.12 million under a pre-arranged Rule 10b5-1 plan. The stock trades at a high valuation, with a P/E ratio above 311, making it particularly sensitive to earnings, licensing developments and the ongoing Qualcomm legal dispute.

Congress Asset Management Co. trimmed its holdings in Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 4.9% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 389,126 shares of the company's stock after selling 19,923 shares during the quarter. Congress Asset Management Co.'s holdings in ARM were worth $112,714,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the business. Hyperion Asset Management Ltd grew its position in ARM by 28.0% in the fourth quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company's stock worth $200,713,000 after buying an additional 401,594 shares during the last quarter. Capital Research Global Investors increased its stake in ARM by 5.1% in the 4th quarter. Capital Research Global Investors now owns 1,805,110 shares of the company's stock worth $197,332,000 after purchasing an additional 86,978 shares in the last quarter. Franklin Resources Inc. raised its holdings in ARM by 0.7% during the 4th quarter. Franklin Resources Inc. now owns 1,461,410 shares of the company's stock worth $159,747,000 after buying an additional 10,385 shares during the period. SG Americas Securities LLC lifted its stake in ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company's stock valued at $146,903,000 after buying an additional 705,459 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company's stock worth $142,983,000 after buying an additional 872,644 shares during the period. 7.53% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ARM has been the subject of a number of recent analyst reports. Royal Bank Of Canada decreased their price objective on shares of ARM from $475.00 to $340.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. Morgan Stanley raised their target price on ARM from $202.00 to $212.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Jefferies Financial Group reiterated a "buy" rating and set a $320.00 price target on shares of ARM in a report on Monday, July 20th. TD Cowen reduced their price objective on ARM from $475.00 to $350.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Finally, Bank of America reaffirmed a "neutral" rating and set a $335.00 target price (up from $245.00) on shares of ARM in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, ARM has a consensus rating of "Moderate Buy" and an average price target of $303.32.

Insider Buying and Selling

In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm will report its fiscal second-quarter 2027 results after the market closes on November 4, giving investors a near-term catalyst to assess demand for its chip architectures, royalty growth, and exposure to artificial intelligence. Arm Announces Earnings Release Date
• Neutral Sentiment: Recent coverage highlights continued demand for Arm-based technology from AI and data-center markets, supporting the company’s long-term growth narrative. However, the shares have already risen sharply this year, leaving results and forward guidance especially important for sustaining the valuation. Arm’s High-Beta Rally and Risk
• Neutral Sentiment: A report on Google’s early experience with Windows on Arm points to ongoing software and platform-compatibility considerations for Arm-based computing. The issue could affect adoption sentiment, although it does not appear to change Arm’s licensing economics directly. Initial Googlebooks Repeat Windows-on-Arm Issues
• Negative Sentiment: Qualcomm and Arm have begun a Delaware federal-court trial over Qualcomm’s allegations that Arm withheld chip-testing tools and breached licensing obligations. Qualcomm is seeking relief that could potentially affect billions of dollars in royalty payments, while Arm faces reputational, contractual, and financial uncertainty. Qualcomm and Arm Begin Trial
• Negative Sentiment: Qualcomm’s multiyear patent agreement with Huawei may reduce its strategic dependence on Arm by broadening its alternative intellectual-property portfolio for AI, networking, and data-center products. The deal’s direct financial impact is unclear, but it could strengthen Qualcomm’s position in the licensing dispute. Qualcomm’s Huawei Deal Adds Strategic Depth
• Negative Sentiment: With a very high earnings multiple and elevated beta, ARM appears priced for continued strong execution. Any unfavorable court development, weaker licensing outlook, or disappointment in upcoming results could produce an outsized stock reaction. Qualcomm Takes Arm to Court

ARM Price Performance

ARM traded down $0.34 during trading on Tuesday, reaching $302.56. 3,389,272 shares of the stock traded hands, compared to its average volume of 7,692,996. Arm Holdings PLC Sponsored ADR has a fifty-two week low of $100.02 and a fifty-two week high of $452.70. The stock's 50-day simple moving average is $267.54 and its two-hundred day simple moving average is $263.70. The stock has a market cap of $323.16 billion, a price-to-earnings ratio of 311.92, a price-to-earnings-growth ratio of 9.12 and a beta of 3.78.

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

ARM Company Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company's offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.

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