Modus Advisors LLC Grows Position in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Modus Advisors LLC increased its ARM stake by 24.9% in the fourth quarter, buying 5,487 additional shares and bringing its total to 27,497 shares valued at about $3.0 million.
• Insider selling has been notable, with executives including Richard Roy Grisenthwaite and Spencer Collins selling large blocks of stock; insiders have sold 301,338 shares worth about $66.0 million over the past three months.
• ARM remains a high-growth but richly valued stock, with analysts maintaining a moderate buy stance even as the shares trade at a high P/E ratio and some commentary warns the AI-driven rally may be stretched.

Modus Advisors LLC raised its position in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 24.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 27,497 shares of the company's stock after purchasing an additional 5,487 shares during the period. Modus Advisors LLC's holdings in ARM were worth $3,006,000 at the end of the most recent reporting period.

Several other institutional investors have also recently modified their holdings of the company. Compound Planning Inc. increased its position in shares of ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company's stock valued at $222,000 after purchasing an additional 69 shares during the last quarter. Rathbones Group PLC increased its position in shares of ARM by 0.7% during the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company's stock valued at $1,493,000 after purchasing an additional 70 shares during the last quarter. Kovack Advisors Inc. increased its position in shares of ARM by 2.0% during the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company's stock valued at $510,000 after purchasing an additional 72 shares during the last quarter. Murphy & Mullick Capital Management Corp increased its position in shares of ARM by 9.1% during the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 926 shares of the company's stock valued at $135,000 after purchasing an additional 77 shares during the last quarter. Finally, Balboa Wealth Partners increased its position in shares of ARM by 2.7% during the 3rd quarter. Balboa Wealth Partners now owns 3,108 shares of the company's stock valued at $440,000 after purchasing an additional 83 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors.

Insider Activity

In other ARM news, insider Richard Roy Grisenthwaite sold 24,339 shares of the company's stock in a transaction that occurred on 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 owned 5,543 shares in the company, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 company's stock in a transaction that occurred on 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 301,338 shares of company stock worth $66,030,158.

Key Stories Impacting ARM

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 Price Performance

ARM opened at $342.93 on Friday. The business has a 50 day simple moving average of $224.64 and a two-hundred day simple moving average of $157.98. The firm has a market capitalization of $362.31 billion, a price-to-earnings ratio of 408.25, a PEG ratio of 12.45 and a beta of 3.78. ARM Holdings PLC Sponsored ADR has a one year low of $100.02 and a one year high of $427.99.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly 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%. As a group, sell-side analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on ARM shares. Jefferies Financial Group set a $290.00 price objective on ARM in a research report on Thursday, May 21st. Needham & Company LLC increased their price objective on ARM from $200.00 to $255.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of ARM in a research report on Thursday, May 7th. Rosenblatt Securities increased their target price on ARM from $175.00 to $270.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Raymond James Financial restated an "outperform" rating on shares of ARM in a report on Thursday, May 7th. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $226.92.

About ARM

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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