Northwestern Mutual Wealth Management Co. Has $182.74 Million Stock Position in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Northwestern Mutual Wealth Management Co. dramatically increased its ARM Holdings stake by 2,623.5% in the fourth quarter, ending with 1.67 million shares valued at about $182.7 million.
• Wall Street remains largely constructive on ARM, with 19 analysts rating it a Buy and a consensus Moderate Buy price target of $199.61, even as some firms have recently adjusted targets.
• ARM shares were trading down 8.5% in the article, while insider selling has been notable: Spencer Collins and CEO Rene A. Haas both sold shares, and insiders have sold $24.6 million worth over the last three months.

Northwestern Mutual Wealth Management Co. lifted its holdings in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 2,623.5% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 1,671,787 shares of the company's stock after purchasing an additional 1,610,403 shares during the quarter. Northwestern Mutual Wealth Management Co. owned about 0.16% of ARM worth $182,743,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of ARM. Grey Fox Wealth Advisors LLC bought a new stake in ARM in the 3rd quarter valued at approximately $28,000. FWL Investment Management LLC bought a new stake in ARM in the 2nd quarter valued at approximately $34,000. Strategic Investment Solutions Inc. IL lifted its stake in ARM by 238.1% in the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company's stock valued at $40,000 after acquiring an additional 200 shares in the last quarter. Navalign LLC bought a new stake in ARM in the 4th quarter valued at approximately $33,000. Finally, WFA of San Diego LLC bought a new stake in ARM in the 2nd quarter valued at approximately $49,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s software and hardware ecosystem continues to reinforce its competitive moat, supporting its leadership in smartphones and device computing. ARM's Powerful Ecosystem Advantage Drives Market Leadership
• Positive Sentiment: Recent reporting says Arm and SoftBank tried to buy Cerebras, signaling continued ambition to expand Arm’s footprint in AI semiconductors. Arm’s Cerebras Bid Sheds Light On AI Chip Expansion Plans
• Positive Sentiment: UBS data showed ARM gaining server chip share at Intel’s expense, reinforcing the bull case for Arm’s long-term growth in data center and AI-related markets. New report shows AMD and ARM continue server share gains at Intel’s expense
• Neutral Sentiment: Analysts warned that the AI trade may be taking a breather, which has weighed on chip stocks broadly rather than on ARM-specific fundamentals. The AI Trade Takes a Breather to End the Week
• Neutral Sentiment: A major insider sale by Spencer Collins may be adding near-term pressure, though it does not change the company’s operating outlook by itself. ARM Insider Spencer Collins Sells 51,961 Shares
• Negative Sentiment: Another market note linked ARM to warnings about a potential chip-stock bubble, contributing to the day’s risk-off sentiment in semiconductor names. Intel Stock Is Falling as Analyst Issues Chip-Stock Bubble Warning

Analysts Set New Price Targets

Several research firms have commented on ARM. Jefferies Financial Group restated a "buy" rating on shares of ARM in a research note on Thursday, May 7th. Evercore lowered their price target on ARM from $215.00 to $170.00 and set an "outperform" rating on the stock in a research report on Thursday, February 5th. Rosenblatt Securities boosted their price target on ARM from $175.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Morgan Stanley reaffirmed an "equal weight" rating and set a $150.00 price target (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. Finally, UBS Group lowered their price target on ARM from $175.00 to $170.00 and set a "buy" rating on the stock in a research report on Thursday, February 5th. Nineteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $199.61.

Insider Buying and Selling

In related news, insider Spencer Collins sold 51,961 shares of the business'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 transaction of $11,001,702.53. Following the transaction, the insider directly owned 51,125 shares of the company's stock, valued at approximately $10,824,696.25. The trade was a 50.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of the business's stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the sale, the chief executive officer owned 290,965 shares of the company's stock, valued at $46,894,829.05. This trade represents a 7.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 135,673 shares of company stock valued at $24,616,433.

ARM Trading Down 8.5%

ARM stock opened at $209.16 on Friday. The firm has a market capitalization of $220.98 billion, a PE ratio of 249.00, a PEG ratio of 7.21 and a beta of 3.40. ARM Holdings PLC Sponsored ADR has a 1-year low of $100.02 and a 1-year high of $239.50. The business's 50 day simple moving average is $164.92 and its 200 day simple moving average is $140.59.

ARM (NASDAQ:ARM - Get Free Report) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business 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, sell-side analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

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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