First Trust Advisors LP Cuts Stock Position in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• First Trust Advisors LP reduced its ARM Holdings stake by 22.1% in the first quarter, selling 209,615 shares and leaving it with 740,398 shares valued at about $112 million.
• Several other large institutional investors also hold meaningful positions in ARM, while overall hedge fund ownership stands at 7.53% of the stock.
• ARM shares were trading around $283, and analysts remain broadly constructive with a Moderate Buy consensus and an average price target of $297.65, even as insiders have recently sold shares.

First Trust Advisors LP cut its stake in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 22.1% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 740,398 shares of the company's stock after selling 209,615 shares during the quarter. First Trust Advisors LP owned 0.07% of ARM worth $112,008,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Morgan Stanley boosted its holdings in shares of ARM by 1.2% in the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company's stock valued at $413,521,000 after acquiring an additional 45,314 shares in the last quarter. Invesco Ltd. raised its holdings in ARM by 36.9% during the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company's stock worth $265,279,000 after purchasing an additional 654,727 shares in the last quarter. Coatue Management LLC raised its holdings in ARM by 1.8% during the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company's stock worth $251,413,000 after purchasing an additional 40,174 shares in the last quarter. Wellington Management Group LLP lifted its position in ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company's stock valued at $234,925,000 after purchasing an additional 631,576 shares during the period. Finally, Schroder Investment Management Group lifted its position in ARM by 11.0% in the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company's stock valued at $206,739,000 after purchasing an additional 187,035 shares during the period. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Trading Down 0.1%

ARM stock opened at $283.04 on Friday. The stock has a fifty day moving average price of $329.25 and a 200 day moving average price of $208.02. The firm has a market capitalization of $302.31 billion, a P/E ratio of 336.95, a PEG ratio of 8.86 and a beta of 3.76. ARM Holdings PLC Sponsored ADR has a 52 week low of $100.02 and a 52 week high of $452.70.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The company had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. As a group, equities analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Activity

In related news, insider Charlotte Claire Eaton sold 7,805 shares of the 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 owned 5,000 shares of the company's stock, valued at approximately $1,450,050. This represents a 60.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Jason Child sold 31,920 shares of ARM stock in a transaction that occurred 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 sale, the chief financial officer owned 174,232 shares in the company, valued at $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 216,049 shares of company stock valued at $52,101,605 in the last 90 days.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: New commentary highlights that Arm’s AI opportunity may extend beyond short-term hype, citing the company’s architecture advantages, royalty model, and expanding end markets as supports for longer-term growth. Why ARM's AI Opportunity Could Extend Beyond Market Hype
• Positive Sentiment: IDC-related coverage says Arm-based servers are gaining share versus x86 in AI infrastructure, with global AI infrastructure spending expected to reach $497 billion in 2026, reinforcing the company’s relevance in AI data centers. ARM servers overtake x86, AI infrastructure spending to reach $497B in '26: IDC
• Positive Sentiment: Another report notes Arm is “gaining ground” in AI servers as the broader AI infrastructure market approaches $500 billion, which could support investor optimism around royalty growth. Arm Gains Ground in AI Servers
• Positive Sentiment: Windows on Arm compatibility is improving, as a modded driver reportedly enables Nvidia GPUs to work on Windows on ARM, a small but encouraging sign for ecosystem adoption. Modded RTX spark driver gets Nvidia GPUs working in Windows on ARM

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of ARM in a research report on Friday, July 17th. KeyCorp lifted their price target on ARM from $300.00 to $430.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. The Goldman Sachs Group upped their price objective on ARM from $125.00 to $150.00 and gave the stock a "sell" rating in a report on Thursday, May 7th. UBS Group reduced their target price on ARM from $470.00 to $360.00 and set a "buy" rating for the company in a report on Monday. Finally, TD Cowen boosted their target price on shares of ARM from $265.00 to $475.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Seventeen investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, ARM currently has a consensus rating of "Moderate Buy" and an average price target of $297.65.

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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