Polar Asset Management Partners Inc. Decreases Stake in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Polar Asset Management cut its stake in ARM by 92.5% in Q3, selling 42,321 shares and ending the quarter with 3,445 shares worth about $487,000.
• Analyst optimism is rising—HSBC upgraded ARM to "buy" with a $205 target citing AI-driven royalty/licensing upside, and other analysts note a potential strategic shift into in‑house merchant CPUs and full‑chiplet designs that could materially expand ARM's addressable market.
• A Malaysia anti‑corruption probe into a roughly $250–279 million government deal poses a regulatory and reputational risk that could weigh on sentiment if the investigation escalates.

Polar Asset Management Partners Inc. lessened its holdings in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 92.5% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,445 shares of the company's stock after selling 42,321 shares during the quarter. Polar Asset Management Partners Inc.'s holdings in ARM were worth $487,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the business. GAMMA Investing LLC raised its position in shares of ARM by 126.0% in the third quarter. GAMMA Investing LLC now owns 174 shares of the company's stock valued at $25,000 after buying an additional 97 shares during the last quarter. Grey Fox Wealth Advisors LLC acquired a new position in ARM during the third quarter worth about $28,000. FWL Investment Management LLC purchased a new stake in ARM during the 2nd quarter valued at about $34,000. Financial Consulate Inc. purchased a new stake in ARM during the 3rd quarter valued at about $45,000. Finally, WFA of San Diego LLC acquired a new stake in ARM in the 2nd quarter valued at about $49,000. Hedge funds and other institutional investors own 7.53% of the company's stock.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: HSBC upgraded ARM from "reduce" to "buy" and raised its price target sharply to $205, driving renewed enthusiasm that ARM's royalty and licensing growth from AI chips could be substantially larger than previously modeled. Arm Holdings stock surges after HSBC's buy upgrade to $205 Arm Stock Jumps on HSBC Upgrade -- Sees Massive Upside on AI Chip Growth Arm shares jump 7% on HSBC upgrade as AI demand boosts outlook
• Positive Sentiment: Bank of America and other analysts flag a strategic shift: ARM may unveil an in‑house standalone merchant CPU and pursue full‑chiplet designs that expand its addressable market into agentic/AI CPUs — a move that could materially raise long‑term revenue and royalty upside if adopted by hyperscalers. Arm Holdings eyes full-chiplet CPUs, but analysts warn near-term headwinds remain
• Positive Sentiment: Independent analyst commentary argues ARM could benefit disproportionately as CPUs (including ARM‑based designs) become central to AI data centers, supporting upside forecasts and higher valuations from multiple research notes. Arm's stock could rocket 50% as Wall Street wakes up to a 'game-changing' trend, analyst says
• Neutral Sentiment: Short‑interest data is mixed and noisy: a reported February decline in short interest contrasts with other notes showing odd/zero figures for March — not a clear driver either way but worth monitoring for volatility signals. ARM Holdings PLC Sponsored ADR NASDAQ: ARM Short Interest Down 13.5% in February
• Negative Sentiment: Malaysia's anti‑corruption agency opened a probe into a roughly $250–279m government deal with ARM, raising regulatory, reputational and government‑contract risk in Southeast Asia; this is a headline risk that could affect sentiment if findings escalate. Malaysia Probe Puts Spotlight On Arm Holdings Valuation And Government Deals

ARM Price Performance

Shares of NASDAQ ARM opened at $132.35 on Friday. The company has a market capitalization of $139.83 billion, a P/E ratio of 176.47, a P/E/G ratio of 8.96 and a beta of 4.11. The company has a 50 day simple moving average of $118.62 and a 200-day simple moving average of $133.99. ARM Holdings PLC Sponsored ADR has a 1 year low of $80.00 and a 1 year high of $183.16.

ARM (NASDAQ:ARM - Get Free Report) last posted its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The company had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter last year, the firm earned $0.39 earnings per share. The firm's quarterly revenue was up 26.3% compared to the same quarter last year. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, research analysts expect that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Mizuho decreased their target price on shares of ARM from $190.00 to $160.00 and set an "outperform" rating on the stock in a research note on Thursday, February 5th. Raymond James Financial started coverage on ARM in a research report on Friday, November 21st. They issued a "hold" rating for the company. Oddo Bhf set a $170.00 price target on ARM in a report on Monday, January 5th. Citigroup downgraded ARM from a "buy" rating to a "hold" rating in a research report on Tuesday, January 13th. Finally, UBS Group lowered their price objective on ARM from $175.00 to $170.00 and set a "buy" rating on the stock in a research note on Thursday, February 5th. Seventeen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $162.82.

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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