Fmr LLC Reduces Stake in Arm Holdings plc

Fmr LLC has reduced its holdings in Arm Holdings plc (NASDAQ:ARM – Free Report) by 9.0% during the third quarter, as reported in its latest 13F filing with the Securities and Exchange Commission. After selling 205,124 shares in this period, Fmr LLC now holds 2,066,163 shares of the company's stock. This reduction means that Fmr LLC owns approximately 0.20% of Arm Holdings, equating to a value of about $295,482,000 at the end of the reporting period.

In addition to Fmr LLC, several other large investors have adjusted their stakes in Arm Holdings. For instance, International Assets Investment Management LLC increased its shareholding by a remarkable 14,351.1%, now owning 812,297 shares worth approximately $1,161,670,000 after acquiring an additional 806,676 shares. Similarly, Sei Investments Co. ramped up its investment in Arm Holdings by 551.6% during the second quarter, owning 579,330 shares valued at $94,790,000 after an additional purchase of 490,415 shares.

Mirae Asset Global Investments Co. Ltd. also expanded its holdings in the third quarter by 186.8%, now possessing 359,105 shares worth $52,279,000 following another 233,909 shares bought during the same period. Moreover, Marsico Capital Management LLC initiated a new position in Arm Holdings in the second quarter, valued at approximately $33,207,000. Alongside them, ProShare Advisors LLC also entered a new position during the second quarter valued at $16,611,000. Overall, institutional investors and hedge funds now control about 7.53% of Arm Holdings shares.

Analysts are Optimistic about ARM's Future

Research analysts have expressed positive views about Arm Holdings recently. Wells Fargo & Company initiated coverage on ARM with an “overweight” rating and set a price target at $155.00 as of November 22. Additionally, JPMorgan Chase & Co. raised their price target from $140.00 to $160.00 with a similarly favorable rating on November 7. Daiwa Capital Markets upgraded ARM from a “neutral” to an “outperform” rating, setting their price target at $130.00 in August.

Moreover, The Goldman Sachs Group increased their price objective on ARM from $144.00 to $159.00, also giving it a “buy” rating on November 7. TD Cowen followed suit by raising their target from $150.00 to $165.00, endorsing a “buy” rating for the stock. Overall, out of the ratings, two analysts have given a sell signal, six have a hold rating, eighteen denote a buy rating, and one has declared a strong buy rating. MarketBeat suggests the current consensus rating for Arm Holdings is “Moderate Buy,” with an average price target of $150.32.

ARM's Stock Performance

On the trading front, Arm Holdings’ stock (NASDAQ:ARM) opened at $134.29 recently. The company's 50-day simple moving average is $142.98 while the 200-day simple moving average stands at $141.70. With a market capitalization of $140.71 billion, Arm Holdings has a price-to-earnings ratio of 223.82 and a price-to-earnings growth ratio of 6.71, along with a beta of 5.40. The shares have fluctuated within a 1-year low of $60.37 and a high of $188.75.

Arm Holdings last released its quarterly earnings on November 6, when they reported earnings per share (EPS) of $0.30, surpassing analysts’ expectations of $0.26 by $0.04. The company demonstrated a net margin of 18.13% with a return on equity of 13.69%. Revenue for the quarter reached $844 million, exceeding the consensus estimate of $810.03 million, marking a 4.7% increase compared to the same quarter in the previous year. Analysts predict that Arm Holdings will report an EPS of 0.79 for the current fiscal year.

About Arm Holdings plc

Arm Holdings plc specializes in the architecture, development, and licensing of central processing unit products and other technologies that semiconductor companies and OEMs (original equipment manufacturers) utilize in their product development. The company provides a diverse range of products including microprocessors, system intellectual property (IPs), graphics processing units, and associated services.

Conclusion

The trading and investment landscape surrounding Arm Holdings plc appears to be dynamic, with significant movements in investor holdings and positive analyst ratings suggesting confidence in the company's future performance.

Fmr, Arm, Shares