VestGen Advisors LLC Sells 4,898 Shares of Arm Holdings PLC Sponsored ADR $ARM

Key Points

• VestGen Advisors reduced its ARM holdings by 25.6% in the third quarter, selling 4,898 shares and retaining 14,243 shares valued at approximately $4.13 million. Institutional investors collectively own 7.53% of the stock.
• ARM CFO Jason Child sold 10,400 shares for $3.12 million under a pre-arranged Rule 10b5-1 trading plan, reducing his direct position by 6.35%.
• ARM shares opened at $228.77, while the company trades at a very elevated 256.41 price-to-earnings ratio. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $303.32, but high valuation and weak mobile demand remain key risks.

VestGen Advisors LLC lessened its holdings in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 25.6% in the third quarter, according to its most recent filing with the SEC. The firm owned 14,243 shares of the company's stock after selling 4,898 shares during the quarter. VestGen Advisors LLC's holdings in ARM were worth $4,125,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Kings Path Partners LLC acquired a new position in shares of ARM in the third quarter worth about $29,000. Syntax Research Inc. purchased a new stake in shares of ARM during the 1st quarter worth about $30,000. Evelyn Partners Investment Management Services Ltd acquired a new stake in ARM in the first quarter valued at approximately $30,000. Cassaday & Co Wealth Management LLC bought a new stake in ARM in the first quarter worth $40,000. Finally, Sterling Capital Management LLC raised its stake in shares of ARM by 1,400.0% in the 1st quarter. Sterling Capital Management LLC now owns 375 shares of the company's stock valued at $57,000 after acquiring an additional 350 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

Insider Buying and Selling at ARM

In related news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the sale, the chief financial officer directly owned 153,442 shares of the company's stock, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Upcoming second-quarter earnings are viewed as a potential catalyst for a recovery in Arm Holdings shares. Strong customer demand and evidence of continued growth could improve investor sentiment and support the stock. Why Arm’s Q2 Earnings Could Spur a Recovery in Its Stock
• Positive Sentiment: Arm’s data-center business is expected to continue offsetting softness in mobile-related demand. Ongoing adoption of Arm-based chips in cloud and infrastructure markets provides an important growth driver, although the article characterizes significant upside as dependent on a bullish scenario. Arm Holdings: Data Centers Will Continue To Offset Weak Mobile, But Upside Only In My Bull Case
• Neutral Sentiment: Reports that a large animated arm is appearing in the X post composer describe a platform-design feature rather than a material development for Arm Holdings. The similarly named company is not connected to the social-media feature. Why Is a Giant Arm Appearing to Point X Users to Promote Whatever Tweets Are Called Now?
• Negative Sentiment: Valuation remains a major risk ahead of earnings. With Arm trading at a very elevated earnings multiple, the stock may require strong results and guidance to justify its price, leaving it vulnerable to disappointment. Arm: The Price Tag Remains Far Too Steep (Earnings Preview)
• Negative Sentiment: Weakness in the mobile market could limit near-term growth, increasing Arm’s reliance on data-center expansion to sustain momentum. Arm: The Price Tag Remains Far Too Steep (Earnings Preview)

ARM Stock Down 3.0%

Shares of ARM stock opened at $228.77 on Friday. Arm Holdings PLC Sponsored ADR has a 12-month low of $100.02 and a 12-month high of $452.70. The company has a market capitalization of $244.34 billion, a price-to-earnings ratio of 256.41, a PEG ratio of 7.00 and a beta of 3.78. The firm's 50-day moving average price is $259.62 and its two-hundred day moving average price is $227.44.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%. The company had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same quarter in the previous year, the firm earned $0.35 EPS. ARM's revenue was up 22.4% on a year-over-year basis. On average, sell-side analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Analysts Set New Price Targets

ARM has been the topic of several research analyst reports. KeyCorp raised their price target on ARM from $300.00 to $430.00 and gave the company an "overweight" rating in a research report on Tuesday, July 14th. Rosenblatt Securities dropped their price objective on ARM from $270.00 to $250.00 and set a "buy" rating for the company in a report on Friday, July 31st. Royal Bank Of Canada lowered their price target on ARM from $475.00 to $340.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Susquehanna increased their price objective on shares of ARM from $300.00 to $320.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Finally, Morgan Stanley upped their price objective on ARM from $202.00 to $212.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $303.32.

ARM Company Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company's offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.

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