Fmr LLC Reduces Stake in Arm Holdings plc

Fmr LLC has recently adjusted its investment in Arm Holdings plc (NASDAQ:ARM – Free Report) by decreasing its stake by 9.0% during the third quarter. The firm's latest 13F filing with the Securities and Exchange Commission revealed that it currently holds 2,066,163 shares after offloading 205,124 shares in that period. At the close of this reporting period, Fmr LLC's shareholding in ARM, which represents approximately 0.20%, was valued at $295,482,000.

In addition to Fmr LLC, several other large investors have also changed their positions in Arm Holdings. International Assets Investment Management LLC significantly increased its stake by 14,351.1% in the third quarter, now owning 812,297 shares worth approximately $1,161,670,000 after acquiring 806,676 additional shares during this timeframe. Sei Investments Co. also made notable changes, boosting its holdings in ARM by 551.6% during the second quarter, resulting in ownership of 579,330 shares valued at $94,790,000 after increasing its shares by 490,415.

Mirae Asset Global Investments Co. Ltd. expanded its position in the third quarter by 186.8%, bringing its total to 359,105 shares valued at $52,279,000 after purchasing an additional 233,909 shares. Marsico Capital Management LLC and ProShare Advisors LLC have also entered into new positions, valued at approximately $33,207,000 and $16,611,000 respectively, during the second quarter. Collectively, hedge funds and other institutional investors own about 7.53% of the company’s stock.

Analyst Insights on ARM

Research analysts have actively provided insights into Arm Holdings' stock. Wells Fargo & Company initiated coverage on ARM with an "overweight" rating and a price target of $155.00. Meanwhile, JPMorgan Chase & Co. raised their target price from $140.00 to $160.00 on November 7th, also giving a rating of "overweight." Daiwa Capital Markets upgraded ARM from a "neutral" rating to an "outperform" designation with a $130.00 price target on August 8th.

The Goldman Sachs Group increased its price objective from $144.00 to $159.00, maintaining a "buy" rating as of November 7th. TD Cowen further adjusted their target price on the same date from $150.00 to $165.00, continuing to endorse a "buy" rating. Overall, the stock has received mixed reviews, with two analysts recommending a sell, six suggesting a hold, eighteen issuing buy ratings, and one giving a strong buy recommendation. According to MarketBeat, ARM currently holds a consensus rating of "Moderate Buy" with an average price target set at $150.32.

Performance Overview of ARM

As of Monday, shares of ARM were trading at $134.29. The company's 50-day and 200-day simple moving averages stand at $142.98 and $141.70 respectively. Arm Holdings boasts a market capitalization of $140.71 billion, with a P/E ratio of 223.82 and 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.

Recently, ARM reported its quarterly earnings on November 6th, showcasing an earnings per share (EPS) of $0.30, which surpassed the consensus estimate of $0.26 by $0.04. The company recorded a net margin of 18.13% and a return on equity of 13.69%. Revenue for the quarter reached $844.00 million, exceeding expectations of $810.03 million, and reflecting a 4.7% increase year-over-year from the previous year's earnings of $0.36 EPS. Analysts are projecting an overall EPS of 0.79 for the current fiscal year.

Company Overview of Arm Holdings plc

Arm Holdings plc specializes in designing and licensing central processing unit (CPU) products and relevant technologies that semiconductor companies and original equipment manufacturers utilize to develop their products. Their offerings include microprocessors, systems intellectual property (IPs), graphics processing units, and various software and tools.

investors, shares, analysts