Fmr LLC Reduces Stake in Arm Holdings plc

Fmr LLC has reduced its stake in Arm Holdings plc (NASDAQ:ARM) by 9.0% during the third quarter, as reported in its latest 13F filing with the Securities and Exchange Commission. Following the sale of 205,124 shares during this period, Fmr LLC now holds 2,066,163 shares of the company's stock. This represents approximately 0.20% ownership of ARM, valued at around $295,482,000 at the conclusion of the reporting period.

In addition to Fmr LLC, several other large investors have altered their positions in Arm Holdings. For instance, International Assets Investment Management LLC significantly increased its stake by 14,351.1% in the third quarter, acquiring an additional 806,676 shares, bringing its total to 812,297 shares valued at approximately $1,161,670,000. Similarly, Sei Investments Co. amplified its holding by 551.6% during the second quarter, now owning 579,330 shares worth $94,790,000 after buying an extra 490,415 shares. Mirae Asset Global Investments Co. Ltd. also increased its stake by 186.8% in the third quarter, acquiring 233,909 shares to reach a total of 359,105 shares, valued at $52,279,000. Other investors, such as Marsico Capital Management LLC and ProShare Advisors LLC, also bought new positions in ARM with valued investments around $33,207,000 and $16,611,000 respectively. Currently, it is estimated that approximately 7.53% of Arm's stock is held by hedge funds and institutional investors.

Analysts’ Insights on ARM

Several research analysts have recently provided updates regarding their outlook on Arm Holdings. Wells Fargo & Company commenced coverage on ARM with an “overweight” rating and a price target of $155.00 on November 22nd. Meanwhile, JPMorgan Chase & Co. increased its target price from $140.00 to $160.00, also assigning an “overweight” rating in a report released on November 7th. Daiwa Capital Markets upgraded ARM from a “neutral” rating to an “outperform” rating with a target price of $130.00 in an earlier analysis. The Goldman Sachs Group adjusted its price objective from $144.00 to $159.00, maintaining a “buy” rating. Lastly, TD Cowen raised its target price from $150.00 to $165.00, while giving ARM a “buy” rating. Overall, two analysts have issued a sell rating, six have a hold rating, eighteen have a buy rating, and one has given a strong buy rating to the company. Based on data from MarketBeat, ARM holds a consensus rating of “Moderate Buy” with an average price target set at $150.32.

ARM’s Current Market Performance

As of Monday, shares of ARM (NASDAQ:ARM) opened at $134.29. The company's 50-day simple moving average is recorded at $142.98, while the 200-day simple moving average stands at $141.70. With a market capitalization of $140.71 billion, ARM's price-to-earnings (P/E) ratio is 223.82, and the company has a P/E/G ratio of 6.71 alongside a beta of 5.40. Over the past year, ARM has seen a low of $60.37 and a high of $188.75.

The most recent quarterly earnings data from ARM was released on November 6th, revealing earnings per share (EPS) of $0.30, surpassing the expected consensus of $0.26 by $0.04. The company posted a net margin of 18.13% and a return on equity of 13.69%. Revenue during the reported quarter totaled $844.00 million, exceeding the anticipated figure of $810.03 million. When compared to the same quarter in the previous year, revenue demonstrated a year-over-year growth of 4.7%. Analysts predict that Arm Holdings plc is set to report an EPS of 0.79 for the current fiscal year.

Understanding Arm Holdings plc

Arm Holdings plc specializes in the architecture, development, and licensing of central processing units (CPUs) and related technologies. Their technologies are essential for semiconductor firms and original equipment manufacturers, enabling them to create innovative products. The company provides microprocessors, systems intellectual property (IPs), graphics processing units, physical IPs, software, tools, and various related services.

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