Wedmont Private Capital Buys New Holdings in Arm Holdings PLC Sponsored ADR $ARM

Key Points

• Wedmont Private Capital acquired 4,801 ARM shares during the third quarter, worth approximately $1.32 million. Institutional investors collectively own 7.53% of the company.
• Analyst sentiment remains favorable, with ARM holding a “Moderate Buy” consensus rating and an average price target of $303.32, despite mixed individual ratings.
• CFO Jason Child sold 10,400 shares for $3.12 million under a pre-arranged Rule 10b5-1 plan. ARM’s latest quarter exceeded expectations, with revenue rising 22.4% year over year to $1.29 billion, but the stock carries a high valuation, including a P/E ratio above 274.

Wedmont Private Capital purchased a new stake in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 4,801 shares of the company's stock, valued at approximately $1,322,000.

Other institutional investors have also recently made changes to their positions in the company. Syntax Research Inc. purchased a new position in ARM in the 1st quarter worth approximately $30,000. Evelyn Partners Investment Management Services Ltd bought a new position in ARM in the 1st quarter valued at approximately $30,000. Motiv8 Investments LLC purchased a new stake in ARM during the 4th quarter valued at $38,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of ARM in the first quarter worth approximately $40,000. Finally, Sterling Capital Management LLC grew its stake in shares of ARM by 1,400.0% in the first quarter. Sterling Capital Management LLC now owns 375 shares of the company's stock worth $57,000 after acquiring an additional 350 shares during the period. Hedge funds and other institutional investors own 7.53% of the company's stock.

Analyst Ratings Changes

ARM has been the topic of a number of research analyst reports. HSBC downgraded shares of ARM from a "buy" rating to a "hold" rating and increased their price objective for the company from $255.00 to $315.00 in a research report on Tuesday, July 14th. Morgan Stanley lifted their target price on shares of ARM from $202.00 to $212.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Raymond James Financial reiterated an "outperform" rating and set a $166.00 target price on shares of ARM in a research note on Tuesday, August 25th. KeyCorp increased their price target on ARM from $300.00 to $430.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Finally, Susquehanna increased their price target on ARM from $300.00 to $320.00 and gave the company a "positive" rating in a report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $303.32.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 10,400 shares of the company's stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The transaction 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.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s AI opportunity remains a major bullish catalyst. Its architecture is used across major AI platforms, while demand for its flagship CPU reportedly exceeded management’s expectations. Shares are up roughly 143% to 177% year to date, reflecting optimism about AI data-center growth. Wall Street May Be Underestimating Arm’s AI Opportunity
• Positive Sentiment: Lattice Semiconductor is collaborating with Arm to integrate FPGA-based control technology into AI servers. The partnership could strengthen Arm’s position in server infrastructure and increase the adoption of its technology in data-center systems. Lattice Collaborates with Arm to Integrate FPGA-Based Control for AI Servers
• Neutral Sentiment: Arm’s recent rebound has renewed interest in the stock, but its approximately 43.5-times forward-sales valuation leaves little room for execution missteps and makes the entry point a key investor concern. ARM Stock Rebounds 11.5% in a Month
• Neutral Sentiment: One valuation model places fair value below the then-current share price, while broader analyst targets remain substantially higher. The wide range highlights disagreement over how much of Arm’s long-term AI growth is already reflected in the stock. Wall Street May Be Underestimating Arm’s AI Opportunity
• Negative Sentiment: Reports tied to OpenAI’s revenue outlook pressured semiconductor stocks, contributing to weakness in Arm. The concern is that uncertainty around AI spending and monetization could challenge the exceptionally high expectations embedded in AI-related valuations. Arm Holdings Stock Fell as an OpenAI Revenue Report Hit Chip Stocks
• Negative Sentiment: Arm and Qualcomm are in a federal trial over licensing and royalty obligations involving Qualcomm chips based on Arm architecture. An unfavorable outcome could affect billions of dollars in royalty payments or future licensing terms. Arm Holdings Heads to Trial Over Billions in Royalty Payments
• Neutral Sentiment: A short-interest update reported zero shares sold short and a zero-day days-to-cover ratio, indicating no measurable short-position overhang in the cited data, although the figure appears inconsistent with the description of a significant increase.

ARM Stock Down 3.3%

ARM stock opened at $266.28 on Friday. Arm Holdings PLC Sponsored ADR has a twelve month low of $100.02 and a twelve month high of $452.70. The stock has a market cap of $284.41 billion, a P/E ratio of 274.52, a PEG ratio of 7.90 and a beta of 3.78. The business's 50-day moving average price is $270.11 and its 200-day moving average price is $265.87.

ARM (NASDAQ:ARM - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $1.26 billion. During the same period in the previous year, the company posted $0.35 EPS. The firm's revenue was up 22.4% on a year-over-year basis. On average, equities research analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

ARM Profile

Arm Holdings plc NASDAQ: ARM is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company's offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.

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