ARM (NASDAQ:ARM) Stock Price Down 2.2% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares dropped 2.2% on Tuesday . The company traded as low as $200.89 and last traded at $207.92. Approximately 7,786,623 shares changed hands during trading, an increase of 0% from the average daily volume of 7,772,085 shares. The stock had previously closed at $212.65.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Reports said Arm and SoftBank previously explored acquiring AI chipmaker Cerebras, highlighting Arm’s ambition to expand deeper into AI semiconductors beyond its core licensing business and potentially strengthen its long-term growth story. Article
• Positive Sentiment: A UBS-linked report indicated Arm and AMD continued gaining server chip share at Intel’s expense in the first quarter of 2026, reinforcing the view that Arm is benefiting from AI and data-center demand trends. Article
• Positive Sentiment: Arm CEO commentary about CPUs scaling to extreme core counts in an AI-driven future supports the market’s bullish narrative that Arm architecture remains central to next-generation computing. Article
• Neutral Sentiment: Arm performed well in recent trading as chip stocks drew interest and investors focused on AI and semiconductor supply-chain developments, including China exposure concerns that remain on the radar. Article
• Negative Sentiment: Insider Spencer Collins sold 51,961 shares of Arm stock in a transaction worth about $11.0 million, which can pressure sentiment because insider selling is often viewed cautiously by investors. Article
• Neutral Sentiment: Arm published developer-focused content around “Arm Performix,” emphasizing scalable performance for AI agents; this reinforces the company’s AI positioning but is not a direct near-term financial catalyst. Article

Wall Street Analysts Forecast Growth

ARM has been the topic of a number of recent research reports. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and boosted their price target for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Mizuho lifted their target price on shares of ARM from $230.00 to $255.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 6th. Evercore reduced their target price on shares of ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, February 5th. UBS Group reduced their target price on shares of ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research note on Thursday, February 5th. Finally, Needham & Company LLC lifted their target price on shares of ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Nineteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $199.61.

ARM Stock Up 3.3%

The business has a 50-day simple moving average of $163.22 and a 200-day simple moving average of $140.10. The company has a market cap of $241.41 billion, a PE ratio of 272.02, a price-to-earnings-growth ratio of 7.63 and a beta of 3.40.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. As a group, equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 1.18 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 21,280 shares of the firm’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 value of $3,157,313.60. Following the completion of the transaction, the chief financial officer owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of the company’s stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the sale, the chief executive officer directly owned 290,965 shares in the company, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 135,673 shares of company stock valued at $24,616,433 in the last three months.

Hedge Funds Weigh In On ARM

Several institutional investors have recently modified their holdings of ARM. Capital Research Global Investors acquired a new stake in shares of ARM in the third quarter valued at $243,098,000. Northwestern Mutual Wealth Management Co. boosted its holdings in ARM by 2,623.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after purchasing an additional 1,610,403 shares during the period. Hyperion Asset Management Ltd acquired a new position in ARM during the 3rd quarter worth $202,980,000. Employees Provident Fund Board acquired a new position in ARM during the 4th quarter worth $120,241,000. Finally, Arrowstreet Capital Limited Partnership grew its stake in ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after purchasing an additional 872,644 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.