ARM (NASDAQ:ARM) Trading 2.7% Higher – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 2.7% on Friday . The stock traded as high as $168.35 and last traded at $166.73. 5,061,076 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 6,762,277 shares. The stock had previously closed at $162.33.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Unusual options activity — Roughly 83,917 call options were bought (about 52% above normal), a near‑term bullish indicator that option traders are positioning for upside or hedging around positive catalysts.
• Positive Sentiment: Ecosystem expansion — Arm joined chip partners in backing driverless‑car startup Wayve, highlighting potential new royalty/licensing markets in automotive and autonomy. Read More.
• Positive Sentiment: OEM design momentum — Coverage of a Framework 13 laptop offering a 12‑core ARM option signals continued PC OEM interest in Arm‑based CPUs, supporting long‑term licensing/revenue potential. Read More.
• Neutral Sentiment: Ongoing media coverage — Broad profiles (e.g., CNN) keep ARM in the spotlight but don’t directly change fundamentals. Read More.
• Neutral Sentiment: Headline noise — An unrelated open‑source “robotic arm” project uses the word “arm” but has no bearing on Arm Holdings’ business. Read More.
• Neutral Sentiment: Analyst backdrop — The consensus remains a moderate buy with a mean target near $175, and recent quarterly results showed revenue and EPS beats in February, supporting the longer‑term thesis. Read More.
• Negative Sentiment: Insider sale — CEO Rene Haas sold 9,299 shares for ~$1.5M under a pre‑arranged Rule 10b5‑1 plan. Such planned sales are often routine, but they can create short‑term selling pressure or negative perception among some investors. Read More.
• Negative Sentiment: Market skepticism — Public commentary (e.g., Jim Cramer noting reservations about recent coverage) can weigh on retail sentiment and amplify short‑term volatility. Read More.

Analysts Set New Price Targets

Several research firms have recently weighed in on ARM. Rosenblatt Securities reissued a “buy” rating and issued a $175.00 price target on shares of ARM in a research note on Wednesday, March 25th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Wednesday, January 21st. TD Cowen decreased their price target on shares of ARM from $190.00 to $165.00 and set a “buy” rating on the stock in a research note on Thursday, February 5th. Bank of America reissued a “neutral” rating and issued a $120.00 price target on shares of ARM in a research note on Tuesday, January 13th. Finally, New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating in a research note on Thursday, February 5th. Eighteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $174.83.

ARM Price Performance

The business’s 50 day simple moving average is $134.07 and its 200 day simple moving average is $134.77. The company has a market capitalization of $176.15 billion, a PE ratio of 222.31, a P/E/G ratio of 7.18 and a beta of 3.33.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the firm earned $0.39 earnings per share. ARM’s quarterly revenue was up 26.3% compared to the same quarter last year. As a group, analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Insider Transactions at ARM

In other news, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the sale, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Jason Child sold 21,280 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the sale, the chief financial officer directly owned 174,706 shares in the company, valued at $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 62,432 shares of company stock worth $9,784,330 over the last ninety days.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Morgan Stanley raised its stake in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after acquiring an additional 45,314 shares during the period. Invesco Ltd. raised its stake in shares of ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after acquiring an additional 654,727 shares during the period. Coatue Management LLC raised its stake in shares of ARM by 1.8% in the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after acquiring an additional 40,174 shares during the period. Wellington Management Group LLP raised its stake in shares of ARM by 41.6% in the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after acquiring an additional 631,576 shares during the period. Finally, Schroder Investment Management Group raised its stake in shares of ARM by 11.0% in the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after acquiring an additional 187,035 shares during the period. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.