Pacific Heights Asset Management LLC Buys 90,000 Shares of ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Pacific Heights Asset Management increased its ARM Holdings stake by 48.6% in the fourth quarter, buying 90,000 more shares and bringing its position to 275,000 shares worth about $30.1 million.
• Several other institutional investors also boosted or initiated positions in ARM, and the stock remains 7.53% owned by institutions overall, indicating continued strong professional interest.
• Despite some recent insider selling, Wall Street remains broadly positive on ARM, with 20 Buy ratings and a consensus Moderate Buy target of $199.61; the stock recently traded around $209.16.

Pacific Heights Asset Management LLC raised its stake in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 48.6% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 275,000 shares of the company's stock after acquiring an additional 90,000 shares during the period. ARM makes up 1.1% of Pacific Heights Asset Management LLC's portfolio, making the stock its 20th largest holding. Pacific Heights Asset Management LLC's holdings in ARM were worth $30,060,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently bought and sold shares of the stock. Bank of America Corp DE increased its holdings in ARM by 22.1% in the 3rd quarter. Bank of America Corp DE now owns 1,802,973 shares of the company's stock valued at $255,103,000 after acquiring an additional 326,230 shares during the last quarter. Invesco Ltd. grew its stake in shares of ARM by 28.2% in the 3rd quarter. Invesco Ltd. now owns 1,772,123 shares of the company's stock worth $250,738,000 after buying an additional 390,217 shares in the last quarter. Capital Research Global Investors purchased a new position in shares of ARM in the 3rd quarter worth $243,098,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of ARM by 2,623.5% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company's stock worth $182,743,000 after buying an additional 1,610,403 shares in the last quarter. Finally, Hyperion Asset Management Ltd purchased a new position in shares of ARM in the 3rd quarter worth $202,980,000. 7.53% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the sale, the chief executive officer owned 290,965 shares in the company, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the sale, the insider owned 51,125 shares of the company's stock, valued at $10,824,696.25. The trade was a 50.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 135,673 shares of company stock valued at $24,616,433.

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

Wall Street Analyst Weigh In

A number of brokerages have commented on ARM. Sanford C. Bernstein began coverage on shares of ARM in a research note on Monday. They issued an "outperform" rating for the company. Susquehanna lifted their price objective on shares of ARM from $170.00 to $210.00 and gave the stock a "positive" rating in a research note on Thursday, April 16th. Jefferies Financial Group reissued a "buy" rating on shares of ARM in a research note on Thursday, May 7th. Wells Fargo & Company lifted their price objective on shares of ARM from $220.00 to $255.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Finally, Evercore dropped their price objective on shares of ARM from $215.00 to $170.00 and set an "outperform" rating for the company in a research note on Thursday, February 5th. Twenty investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, ARM presently has a consensus rating of "Moderate Buy" and a consensus target price of $199.61.

ARM Stock Performance

ARM stock opened at $209.16 on Monday. ARM Holdings PLC Sponsored ADR has a 12 month low of $100.02 and a 12 month high of $239.50. The company has a 50-day moving average price of $164.92 and a 200 day moving average price of $140.32. The stock has a market cap of $220.98 billion, a PE ratio of 249.00, a P/E/G ratio of 7.60 and a beta of 3.40.

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. ARM had a net margin of 18.37% and a return on equity of 12.43%. The firm had revenue of $1.49 billion during the quarter. Sell-side analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

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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