Sumitomo Mitsui Trust Group Inc. Acquires 53,914 Shares of ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Sumitomo Mitsui Trust Group boosted its ARM stake by 146.3% in the first quarter, adding 53,914 shares to bring its total to 90,773 shares valued at about $13.7 million.
• Other institutional investors also adjusted positions in ARM, while insiders were notable sellers: 238,906 shares were sold by insiders over the last 90 days, including large sales by Spencer Collins and Richard Roy Grisenthwaite.
• Analysts remain mixed but generally constructive on ARM, with 18 Buy ratings and an average target price of $295.25; the stock was trading down 6% at $281.17 despite strong recent earnings of $0.60 EPS on $1.49 billion in revenue.

Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 146.3% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 90,773 shares of the company's stock after purchasing an additional 53,914 shares during the period. Sumitomo Mitsui Trust Group Inc.'s holdings in ARM were worth $13,732,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the business. DSM Capital Partners LLC increased its position in ARM by 5.2% in the 1st quarter. DSM Capital Partners LLC now owns 2,730 shares of the company's stock worth $413,000 after buying an additional 134 shares during the period. Greenwood Capital Associates LLC bought a new stake in shares of ARM in the first quarter valued at approximately $2,081,000. Swedbank AB grew its stake in shares of ARM by 15.7% in the first quarter. Swedbank AB now owns 421,000 shares of the company's stock worth $63,689,000 after acquiring an additional 57,000 shares during the last quarter. Whittier Trust Co. of Nevada Inc. acquired a new stake in shares of ARM in the first quarter worth $3,589,000. Finally, Whittier Trust Co. acquired a new stake in shares of ARM in the first quarter worth $8,747,000. Institutional investors own 7.53% of the company's stock.

Insider Activity at ARM

In related news, insider Spencer Collins sold 51,961 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the transaction, the insider owned 51,125 shares of the company's stock, valued at $10,824,696.25. This represents a 50.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction dated 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 completion of the transaction, the insider directly owned 5,543 shares of the company's stock, valued at $1,159,318.45. This trade represents a 81.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 238,906 shares of company stock worth $56,245,828 in the last ninety days.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Bank of America upped their target price on shares of ARM from $335.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, June 23rd. The Goldman Sachs Group raised their price target on shares of ARM from $125.00 to $150.00 and gave the stock a "sell" rating in a research report on Thursday, May 7th. Raymond James Financial restated an "outperform" rating on shares of ARM in a report on Thursday, May 7th. Morgan Stanley restated an "equal weight" rating and set a $150.00 price objective (up from $135.00) on shares of ARM in a report on Tuesday, April 7th. Finally, Guggenheim upped their price objective on shares of ARM from $240.00 to $255.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Eighteen equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $295.25.

ARM Trading Down 6.0%

Shares of NASDAQ ARM opened at $281.17 on Wednesday. The firm has a market capitalization of $300.31 billion, a price-to-earnings ratio of 334.73, a PEG ratio of 10.86 and a beta of 3.76. ARM Holdings PLC Sponsored ADR has a one year low of $100.02 and a one year high of $452.70. The business has a fifty day simple moving average of $321.30 and a 200 day simple moving average of $199.88.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly 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 for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. On average, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share 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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