Sustainable Growth Advisers LP Reduces Stock Holdings in ARM Holdings PLC Sponsored ADR $ARM

Key Points

• Sustainable Growth Advisers LP cut its ARM Holdings position by 7.4% in the fourth quarter, selling 213,579 shares and ending with 2.67 million shares valued at about $291.7 million.
• Several other institutional investors also adjusted holdings in ARM, and overall hedge funds and institutions now own 7.53% of the company’s stock.
• ARM has drawn renewed investor attention after Nvidia’s Arm-based PC push, which helped drive shares to record highs and prompted multiple analysts to raise price targets, with the consensus rating still at Moderate Buy.

Sustainable Growth Advisers LP lowered its position in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 7.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,668,130 shares of the company's stock after selling 213,579 shares during the quarter. ARM accounts for approximately 2.0% of Sustainable Growth Advisers LP's holdings, making the stock its 20th biggest holding. Sustainable Growth Advisers LP owned 0.25% of ARM worth $291,653,000 at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in the company. Amundi increased its position in ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company's stock worth $1,153,000 after purchasing an additional 2,345 shares in the last quarter. Empowered Funds LLC increased its position in ARM by 28.8% during the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company's stock worth $522,000 after purchasing an additional 1,094 shares in the last quarter. Schnieders Capital Management LLC. increased its position in ARM by 9.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company's stock worth $393,000 after purchasing an additional 200 shares in the last quarter. Bank of Nova Scotia purchased a new stake in ARM during the 2nd quarter worth about $556,000. Finally, State Street Corp increased its position in ARM by 14.7% during the 2nd quarter. State Street Corp now owns 441,445 shares of the company's stock worth $71,399,000 after purchasing an additional 56,656 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company's stock.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Nvidia’s RTX Spark launch reportedly uses an Arm design for the central processing unit, giving Arm a high-profile win and boosting confidence that its architecture could gain share in AI PCs. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Multiple reports said Arm hit a record high as investors viewed Nvidia’s chip announcement as validation of Arm’s technology and a potential catalyst for future licensing and royalty growth. Why Arm Stock Hit a Record High on Nvidia’s Chip Announcement
• Positive Sentiment: Coverage around Nvidia’s new PC push highlighted that the chip will appear in devices from major OEMs, reinforcing the commercial relevance of Arm’s ecosystem and lifting sentiment across the sector. Nvidia jumps into PCs with new Arm-based chip debuting in laptops from Microsoft, Dell, HP
• Neutral Sentiment: An insider sale by William Abbey of 4,200 shares was disclosed, but it appears smaller than the AI-PC-driven optimism and was likely not the main stock driver. Insider trade disclosure

Analyst Upgrades and Downgrades

A number of research firms recently commented on ARM. Barclays lifted their price objective on ARM from $250.00 to $360.00 and gave the stock an "overweight" rating in a research report on Monday. Morgan Stanley reiterated an "equal weight" rating and set a $150.00 price objective (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. Rosenblatt Securities lifted their price objective on ARM from $175.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Wells Fargo & Company lifted their price objective on ARM from $255.00 to $410.00 and gave the stock an "overweight" rating in a research report on Monday. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of ARM in a research report on Monday, April 20th. 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.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $226.92.

ARM Price Performance

NASDAQ ARM opened at $408.85 on Tuesday. The firm has a market capitalization of $431.95 billion, a P/E ratio of 486.73, a P/E/G ratio of 12.83 and a beta of 3.77. ARM Holdings PLC Sponsored ADR has a 1-year low of $100.02 and a 1-year high of $421.69. The business's 50-day simple moving average is $204.85 and its 200-day simple moving average is $151.19.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings data 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%. On average, equities research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the transaction, the insider directly 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. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider William Abbey sold 10,887 shares of ARM stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $224.14, for a total value of $2,440,212.18. Following the completion of the transaction, the insider directly owned 43,353 shares in the company, valued at $9,717,141.42. This represents a 20.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 283,466 shares of company stock worth $58,946,033.

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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