Fmr LLC Reduces Shareholding in Arm Holdings plc

Fmr LLC has decreased its ownership in Arm Holdings plc (NASDAQ:ARM – Free Report) by 9.0% during the third quarter, as outlined in its latest 13F filing with the Securities and Exchange Commission. Following this reduction, Fmr LLC holds 2,066,163 shares of Arm's stock, having sold 205,124 shares during the period. As of the end of the reporting quarter, Fmr LLC owned approximately 0.20% of Arm Holdings, which is valued at around $295,482,000.

Other institutional investors have also adjusted their stakes in Arm Holdings. For instance, International Assets Investment Management LLC significantly increased its investment by 14,351.1% during the third quarter, now owning 812,297 shares valued at $1,161,670,000 after buying an additional 806,676 shares. Sei Investments Co. boosted its investment by 551.6% in the second quarter, raising its holdings to 579,330 shares worth $94,790,000 after acquiring 490,415 additional shares. In the third quarter, Mirae Asset Global Investments Co. Ltd. enhanced its position by 186.8%, now possessing 359,105 shares valued at $52,279,000 after purchasing 233,909 shares. Additionally, Marsico Capital Management LLC initiated a new position in Arm during the second quarter, valued around $33,207,000, and ProShare Advisors LLC also acquired a new stake worth roughly $16,611,000.

Analyst Upgrades and Price Targets

Recently, several analysts have commented on Arm Holdings. Wells Fargo & Company began coverage on Arm on November 22 with an “overweight” rating and a price target of $155.00. In a report dated November 7, JPMorgan Chase raised its price target from $140.00 to $160.00 while maintaining an “overweight” rating. Daiwa Capital Markets upgraded its stance from “neutral” to “outperform” with a new price target of $130.00 in August. The Goldman Sachs Group also updated its target for Arm, increasing it from $144.00 to $159.00 with a “buy” recommendation. Lastly, TD Cowen set its price target for Arm at $165.00, maintaining a “buy” rating. Overall, in the analyst community, two have rated Arm with a sell, six provided a hold rating, eighteen issued buy ratings, and one an upgrade to a strong buy, leading to a consensus rating of “Moderate Buy” and an average price target of $150.32.

Arm Holdings' Market Performance

At the start of the week, shares of Arm Holdings (NASDAQ:ARM – Get Free Report) opened at $134.29. The company has a 50-day simple moving average of $142.98 and a 200-day simple moving average of $141.70. Currently, Arm Holdings has a market capitalization of $140.71 billion, a P/E ratio of 223.82, and a P/E/G ratio of 6.71, with a beta of 5.40. Over the past year, the stock has seen a low of $60.37 and a high of $188.75.

Arm Holdings recently disclosed its quarterly earnings on November 6. The company reported earnings per share (EPS) of $0.30, surpassing the consensus estimate of $0.26 by $0.04. Arm's net margin stood at 18.13% with a return on equity of 13.69%. The quarterly revenue reached $844 million, exceeding the forecast of $810.03 million, reflecting a 4.7% increase year-over-year compared to the previous year's EPS of $0.36. Analysts anticipate that Arm Holdings will report an EPS of 0.79 for the current fiscal year.

Overview of Arm Holdings

Arm Holdings plc designs, develops, and licenses central processing unit products and related technologies that semiconductor firms and manufacturers depend on to create products. Their offerings include microprocessors, intellectual property (IPs) systems, graphics processing units, physical IP, and associated systems IPs, along with software, tools, and various other supportive services.

Arm, Fmr, Shares