Envestnet Portfolio Solutions Inc. Acquires 7,771 Shares of Arm Holdings PLC Sponsored ADR $ARM

Key Points

• Envestnet Portfolio Solutions acquired 7,771 Arm shares worth approximately $2.76 million, while institutional investors collectively own 7.53% of the company.
• Arm reported quarterly EPS of $0.45 and revenue of $1.29 billion, exceeding analyst expectations, with revenue rising 22.4% year over year. The stock recently traded at $310.32, up 1.3%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $305.72 price target, but valuation risk remains significant given Arm’s exceptionally high P/E ratio and the need for AI demand to translate into stronger royalty growth.

Envestnet Portfolio Solutions Inc. acquired a new position in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 7,771 shares of the company's stock, valued at approximately $2,755,000.

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

ARM Stock Up 1.3%

NASDAQ:ARM opened at $310.32 on Friday. The stock's 50 day moving average price is $264.04 and its two-hundred day moving average price is $254.13. Arm Holdings PLC Sponsored ADR has a 12-month low of $100.02 and a 12-month high of $452.70. The firm has a market capitalization of $331.45 billion, a price-to-earnings ratio of 319.92, a P/E/G ratio of 9.08 and a beta of 3.89.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. The firm 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%. The business's revenue was up 22.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.35 EPS. Equities research analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Analysts Set New Price Targets

Several research firms have recently weighed in on ARM. 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 report on Thursday, July 30th. Susquehanna upped their price target on ARM from $300.00 to $320.00 and gave the stock a "positive" rating in a research report on Tuesday, July 21st. New Street Research raised shares of ARM from a "neutral" rating to a "buy" rating and set a $260.00 price target for the company in a research note on Thursday, July 30th. UBS Group lowered their price objective on shares of ARM from $360.00 to $320.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Finally, Sanford C. Bernstein set a $500.00 price objective on shares of ARM in a research report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, ARM has an average rating of "Moderate Buy" and a consensus price target of $305.72.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Meta’s Muse launch is reinforcing expectations that AI agents will drive greater demand for CPUs, potentially benefiting Arm’s processor architectures and expanding future licensing and royalty revenue. However, workload growth must still translate into higher chip shipments, architecture share and royalties. Arm Stocks Surge as Muse Makes CPUs Matter Again
• Positive Sentiment: Investors are buying ARM after its recent decline, with the rebound outperforming much of the semiconductor group. The move reflects renewed confidence in Arm as a potential beneficiary of data-center and agentic-AI expansion. Arm Climbs as Buyers Return After Sharp Pullback
• Neutral Sentiment: The AI thesis is attractive, but analysts note that more CPU cores alone do not guarantee proportional financial gains. Arm must capture meaningful architecture share and favorable chip mix before higher AI usage produces substantial royalty growth.
• Negative Sentiment: Valuation remains a major risk. With the shares trading at an exceptionally high earnings multiple, one recent analysis argues that ARM is priced too aggressively and leaves limited room for execution disappointments or a slowdown in AI enthusiasm. Don't Buy Arm Holdings This Expensively
• Negative Sentiment: CFO Jason Child sold 10,400 shares for approximately $3.12 million at an average price of $300 under a pre-arranged Rule 10b5-1 plan. Because he retained a substantial position and the sale was scheduled, it is a limited bearish signal, but it may still add to investor caution at elevated prices. ARM CFO Jason Child Sells Shares

Insider Activity

In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer owned 153,442 shares of the company's stock, valued at approximately $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ARM Profile

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm's portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.

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