Formidable Asset Management LLC Makes New $1.85 Million Investment in Arm Holdings PLC Sponsored ADR $ARM

Key Points

• Formidable Asset Management opened a new ARM position, buying 6,376 shares worth approximately $1.85 million in the third quarter.
• ARM reported quarterly revenue of $1.44 billion, up 27.1% year over year and above estimates; strength in AI and data-center demand helped offset weaker smartphone-related royalties.
• Despite the earnings beat, valuation concerns contributed to a selloff and some analysts cut price targets. ARM’s consensus rating remains “Moderate Buy,” with an average target of $291.72.

Formidable Asset Management LLC purchased a new stake in shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 6,376 shares of the company's stock, valued at approximately $1,847,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in ARM. Arrowstreet Capital Limited Partnership boosted its holdings in shares of 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 buying an additional 872,644 shares during the period. Janus Henderson Group PLC acquired a new stake in ARM during the first quarter worth approximately $116,112,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in ARM during the third quarter worth approximately $179,998,000. Altshuler Shaham Ltd lifted its position in ARM by 202.6% during the first quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company's stock worth $72,356,000 after acquiring an additional 320,236 shares during the last quarter. Finally, Liontrust Investment Partners LLP boosted its holdings in shares of ARM by 139.7% during the first quarter. Liontrust Investment Partners LLP now owns 347,339 shares of the company's stock worth $52,545,000 after acquiring an additional 202,410 shares during the period. 7.53% of the stock is owned by institutional investors.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm reported fiscal Q2 revenue of $1.44 billion, ahead of estimates. Licensing revenue rose 50%, and data-center royalties doubled, highlighting demand for Arm technology in AI infrastructure. Arm Holdings' Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: Arm’s push into its own AGI CPU could broaden its opportunity beyond chip-design royalties; management sees potential for up to $2 billion in revenue in fiscal 2027–28. Oracle has also said it plans to offer Arm AGI CPU instances in 2027. Arm Holdings' Q2 Earnings Call Centers on AGI CPU Expansion
• Positive Sentiment: UBS and JPMorgan retained Buy/Overweight ratings despite cutting their price targets, indicating continued analyst confidence in potential upside. UBS analyst recommendations JPMorgan price target
• Neutral Sentiment: AI and data-center stocks faced market-wide pressure after midterm-election results raised concerns about a possible slowdown in data-center investment. Major indexes recovered some losses Friday, offering a more supportive backdrop, though uncertainty remains. Tech executives react to post-midterm AI sell-off
• Negative Sentiment: Investors focused on weaker smartphone-related royalties and concerns that handset demand may soften, offsetting Arm’s strong data-center growth. Royalty revenue is recurring, so slower growth here may temper expectations for future earnings. Weak smartphone royalties offset AI data-center growth
• Negative Sentiment: Valuation concerns amplified the post-earnings selloff: investors questioned whether Arm’s high expectations are justified even after the quarterly revenue beat. UBS cut its target from $320 to $270, and JPMorgan lowered its target from $255 to $245. Arm stock slides as results stoke valuation doubts

Analyst Ratings Changes

ARM has been the topic of several research reports. KeyCorp upped their target price on ARM from $300.00 to $430.00 and gave the company an "overweight" rating in a research report on Tuesday, July 14th. HSBC reissued a "hold" rating and set a $215.00 price target on shares of ARM in a report on Thursday. Barclays reduced their price target on ARM from $360.00 to $325.00 and set an "overweight" rating for the company in a research note on Thursday. New Street Research raised ARM from a "neutral" rating to a "buy" rating and set a $260.00 price objective on the stock in a report on Thursday, July 30th. Finally, Morgan Stanley increased their price objective on ARM from $202.00 to $212.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Nineteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, ARM presently has a consensus rating of "Moderate Buy" and an average target price of $291.72.

ARM Stock Performance

NASDAQ:ARM opened at $174.62 on Friday. The company has a market cap of $186.51 billion, a price-to-earnings ratio of 200.71, a PEG ratio of 5.10 and a beta of 3.93. Arm Holdings PLC Sponsored ADR has a fifty-two week low of $100.02 and a fifty-two week high of $452.70. The stock has a fifty day moving average price of $252.78 and a 200-day moving average price of $229.93.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.48 by $0.04. ARM had a return on equity of 11.57% and a net margin of 17.13%. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the previous year, the firm earned $0.39 earnings per share. ARM's revenue for the quarter was up 27.1% compared to the same quarter last year. Research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.17 EPS for the current fiscal year.

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the firm's stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares of the company's stock, valued at $46,032,600. This trade represents a 6.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them.

Arm's offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.