Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. Makes New Investment in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Mitsubishi UFJ Morgan Stanley Securities opened a new position in ARM Holdings during the fourth quarter, buying 8,740 shares worth about $955,000. ARM now ranks as the firm’s 17th-largest holding and makes up 1.5% of its portfolio.
• Institutional interest in ARM remains strong, with several other funds also adding or expanding positions in the stock. Notably, Rathbones Group PLC increased its stake by 4,638.8% in the fourth quarter.
• ARM is drawing bullish attention from analysts and investors due to its role in AI infrastructure, but the stock also faces some risks, including heavy insider selling, high valuation concerns, and a reported U.S. antitrust probe over chip licensing practices.

Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new position in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 8,740 shares of the company's stock, valued at approximately $955,000. ARM makes up 1.5% of Mitsubishi UFJ Morgan Stanley Securities Co. Ltd.'s investment portfolio, making the stock its 17th biggest holding.

Other institutional investors also recently bought and sold shares of the company. Rathbones Group PLC boosted its position in ARM by 4,638.8% during the fourth quarter. Rathbones Group PLC now owns 500,043 shares of the company's stock worth $54,660,000 after purchasing an additional 489,491 shares in the last quarter. Paragon Capital Management Inc. purchased a new stake in ARM during the fourth quarter worth $826,000. Lansdowne Partners UK LLP purchased a new stake in ARM during the third quarter worth $8,486,000. Hyperion Asset Management Ltd purchased a new stake in ARM during the third quarter worth $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in ARM by 34.7% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company's stock worth $2,644,000 after purchasing an additional 6,232 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s new AGI CPU platform is being viewed as a potential growth engine for AI data centers, with major cloud players and Nvidia reportedly adopting the architecture and Red Hat deepening its collaboration with Arm. Arm’s AGI CPUs Put AI Data Center Growth Story In Focus
• Positive Sentiment: Fresh analyst upgrades and upbeat market commentary are reinforcing the view that Arm is a key beneficiary of AI infrastructure spending, supporting strong momentum in the shares. Can Arm stock climb higher after fresh AI-driven analyst upgrades?
• Positive Sentiment: One note cited in the news flow said Arm could grow profits fivefold by 2030, adding to the bullish long-term earnings outlook and fueling investor enthusiasm. Arm Holdings (ARM) Soars 46% as Profits Seen Growing 5x
• Neutral Sentiment: Insider selling by William Abbey may attract attention, but the reduction in ownership was relatively small and does not materially change the company’s outlook. SEC insider filing
• Neutral Sentiment: Valuation has become a talking point after the stock’s sharp run-up, with some investors reassessing whether the current premium leaves enough room for further upside. Arm Holdings (ARM) Valuation Check After Strong Recent Share Price Momentum
• Negative Sentiment: Arm also faces a reported U.S. antitrust probe into its chip licensing practices, which could create a regulatory overhang if the investigation intensifies. Arm Holdings plc (ARM) to Face US Antitrust Probe over Chip Tech, Bloomberg News Reports

Insider Activity at ARM

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the transaction, the insider directly owned 5,543 shares in the company, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the transaction, the insider owned 51,125 shares in the company, valued at $10,824,696.25. This trade represents a 50.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 279,266 shares of company stock worth $57,502,031.

Wall Street Analyst Weigh In

A number of research firms have commented on ARM. The Goldman Sachs Group boosted their target price on ARM from $125.00 to $150.00 and gave the stock a "sell" rating in a research report on Thursday, May 7th. Royal Bank Of Canada increased their target price on ARM from $175.00 to $260.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. New Street Research upgraded ARM from a "neutral" rating to a "buy" rating in a report on Thursday, February 5th. Mizuho increased their target price on ARM from $230.00 to $255.00 and gave the company an "outperform" rating in a report on Wednesday, May 6th. Finally, Sanford C. Bernstein initiated coverage on ARM in a report on Monday, May 18th. They set an "outperform" rating and a $300.00 target price on the stock. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, ARM has a consensus rating of "Moderate Buy" and an average price target of $208.79.

ARM Stock Performance

Shares of NASDAQ:ARM opened at $335.27 on Friday. The business's fifty day moving average price is $194.77 and its two-hundred day moving average price is $147.97. The stock has a market cap of $354.22 billion, a PE ratio of 399.13, a price-to-earnings-growth ratio of 10.99 and a beta of 3.40. ARM Holdings PLC Sponsored ADR has a one year low of $100.02 and a one year high of $349.42.

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

ARM 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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