Jason Child Sells 10,400 Shares of ARM (NASDAQ:ARM) Stock

Key Points

• Arm CFO Jason Child sold 10,400 shares at an average price of $300, generating $3.12 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan and reduced his ownership by 6.35%.
• ARM shares were trading near $332.56, with a market capitalization of roughly $355 billion and a trailing P/E ratio above 340, highlighting the stock’s elevated valuation and volatility.
• Arm’s latest quarterly results exceeded expectations, with revenue rising 22.4% year over year to $1.29 billion and EPS reaching $0.45. Analysts maintain a consensus “Moderate Buy” rating, with an average price target of $305.72.

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) CFO Jason Child sold 10,400 shares of the firm's stock in a transaction dated Monday, September 21st. The stock was 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 owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Jason Child also recently made the following trade(s):

• On Thursday, August 27th, Jason Child sold 10,400 shares of ARM stock. The stock was sold at an average price of $255.33, for a total transaction of $2,655,432.00.

ARM Price Performance

NASDAQ ARM traded down $0.64 during mid-day trading on Wednesday, hitting $332.56. The company's stock had a trading volume of 6,959,052 shares, compared to its average volume of 7,791,226. Arm Holdings PLC Sponsored ADR has a 52-week low of $100.02 and a 52-week high of $452.70. The stock's fifty day simple moving average is $262.29 and its two-hundred day simple moving average is $252.38. The firm has a market capitalization of $355.20 billion, a P/E ratio of 342.85, a price-to-earnings-growth ratio of 9.58 and a beta of 3.89.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. 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 firm earned $0.35 earnings per share. ARM's revenue for the quarter was up 22.4% on a year-over-year basis. On average, equities analysts forecast that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ARM. QRG Capital Management Inc. boosted its holdings in ARM by 32.1% in the second quarter. QRG Capital Management Inc. now owns 9,591 shares of the company's stock valued at $3,401,000 after purchasing an additional 2,330 shares during the last quarter. Envestnet Portfolio Solutions Inc. acquired a new stake in ARM during the 2nd quarter valued at approximately $2,755,000. IKE Capital LLC increased its holdings in ARM by 88.7% during the 2nd quarter. IKE Capital LLC now owns 5,331 shares of the company's stock worth $1,890,000 after purchasing an additional 2,506 shares during the last quarter. Capstone Financial Advisors Inc. purchased a new stake in ARM during the 2nd quarter worth approximately $308,000. Finally, MCF Advisors LLC raised its position in shares of ARM by 11.7% in the 2nd quarter. MCF Advisors LLC now owns 764 shares of the company's stock valued at $271,000 after purchasing an additional 80 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have commented on ARM. Raymond James Financial restated an "outperform" rating on shares of ARM in a research note on Tuesday, August 25th. Wells Fargo & Company dropped their target price on ARM from $350.00 to $280.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Royal Bank Of Canada decreased 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. Piper Sandler assumed coverage on shares of ARM in a research report on Wednesday, September 9th. They issued an "overweight" rating and a $320.00 price objective for the company. Finally, Bank of America reiterated a "neutral" rating on shares of ARM in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $305.72.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Reports that Meta is partnering with Arm on its “Muse” custom AI processor, potentially targeting $2 billion in revenue, have strengthened the case for Arm’s expansion from smartphone royalties into data-center and AI infrastructure. Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure
• Positive Sentiment: CEO Rene Haas said chip demand is “off the charts” and expressed increasing confidence that Arm can exceed its $2 billion AGI CPU revenue goal. Investors see potential upside as agentic AI increases demand for CPU-based inference and data-center capacity. Arm Just Got a Major Vote of Confidence From Its CEO
• Positive Sentiment: Arm’s architecture could benefit from data-center expansion: the company expects more than four times today’s CPU capacity per gigawatt as AI workloads grow. This supports the long-term investment thesis and explains recent buying interest. Arm Gains 1.5% as Agentic AI Multiplies CPU Cores
• Neutral Sentiment: Unusually heavy options activity indicates heightened speculative interest, but it does not establish a clear directional signal. ARM Sees Unusually Large Options Volume
• Negative Sentiment: After a reported 36% jump, Arm trades at roughly 143 times forward earnings; the supplied market data also shows a trailing P/E above 340. Analysts caution that the AI growth narrative may already be largely reflected in the share price, encouraging profit-taking and making the stock vulnerable to disappointment. Arm Just Jumped 36% Now Its Valuation Is Raising Eyebrows
• Negative Sentiment: Supply constraints at semiconductor foundries and the uncertainty of shifting from a royalty model toward selling complete silicon could restrict near-term execution. Comparisons with Taiwan Semiconductor Manufacturing also highlight that Arm designs chips but does not control their production. Arm vs. Taiwan Semiconductor Manufacturing

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm's portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.

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