Rathbones Group PLC Acquires 489,491 Shares of ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Rathbones Group PLC dramatically increased its stake in Arm Holdings, buying 489,491 additional shares in Q4 and raising its position to 500,043 shares valued at about $54.7 million.
• Wall Street sentiment on Arm remains broadly positive, with multiple firms raising targets or reaffirming bullish ratings; recent calls include Bernstein’s $300 target and TD Cowen’s $265 target.
• The stock has been volatile amid both optimism and caution: Arm is trading near its 52-week high, but it also faces potential pressure from a reported U.S. antitrust probe and recent insider sales.

Rathbones Group PLC lifted its holdings in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 4,638.8% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 500,043 shares of the company's stock after acquiring an additional 489,491 shares during the quarter. Rathbones Group PLC's holdings in ARM were worth $54,660,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Paragon Capital Management Inc. bought a new position in shares of ARM during the 4th quarter worth approximately $826,000. Lansdowne Partners UK LLP bought a new position in shares of ARM during the 3rd quarter worth approximately $8,486,000. Hyperion Asset Management Ltd bought a new position in shares of ARM during the 3rd quarter worth approximately $202,980,000. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of ARM by 34.7% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company's stock worth $2,644,000 after acquiring an additional 6,232 shares during the period. Finally, Baillie Gifford & Co. bought a new position in shares of ARM during the 3rd quarter worth approximately $90,678,000. 7.53% of the stock is currently owned by institutional investors.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Bernstein initiated coverage on ARM with an outperform rating and a $300 price target, highlighting upside tied to Arm’s AI infrastructure and CPU growth potential.
• Positive Sentiment: TD Cowen also turned more constructive, raising its price target to $265 from $165 and reiterating a Buy, citing a stronger AGI CPU growth narrative.
• Positive Sentiment: Media coverage pointed to renewed enthusiasm for Arm as a key beneficiary of AI-driven semiconductor demand, helping extend the stock’s strong upward trend.
• Neutral Sentiment: Several insider sales were disclosed, but they were described as pre-arranged Rule 10b5-1 transactions tied to equity compensation tax withholding, which makes them less meaningful as a business signal.
• Negative Sentiment: Yahoo Finance reported that ARM fell on news of a possible U.S. antitrust probe, raising concerns about future scrutiny of Arm’s licensing model and creating some regulatory overhang. Article: Arm Falls on Reported US Antitrust Probe

Wall Street Analyst Weigh In

ARM has been the subject of several research analyst reports. JPMorgan Chase & Co. reduced their target price on ARM from $180.00 to $145.00 and set an "overweight" rating for the company in a research note on Thursday, February 5th. Jefferies Financial Group restated a "buy" rating on shares of ARM in a research note on Thursday, May 7th. Evercore reduced their price target on ARM from $215.00 to $170.00 and set an "outperform" rating for the company in a research note on Thursday, February 5th. Needham & Company LLC boosted their price target on ARM from $200.00 to $255.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Finally, Royal Bank Of Canada boosted their price target on ARM from $175.00 to $260.00 and gave the company an "outperform" rating in a research note on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $203.79.

ARM Trading Up 15.0%

NASDAQ ARM opened at $256.73 on Thursday. The company has a 50 day moving average of $171.77 and a 200-day moving average of $141.63. The company has a market cap of $271.24 billion, a price-to-earnings ratio of 305.63, a PEG ratio of 8.10 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 $259.44.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The firm 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%. On average, equities research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current year.

Insider Activity

In other news, CFO Jason Child sold 21,280 shares of the company's stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total transaction of $3,830,400.00. Following the completion of the sale, the chief financial officer directly owned 153,426 shares in the company, valued at approximately $27,616,680. This represents a 12.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of the company's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $160.85, for a total value of $1,495,744.15. Following the sale, the chief executive officer owned 273,680 shares of the company's stock, valued at approximately $44,021,428. The trade was a 3.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 168,589 shares of company stock worth $31,508,607.

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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