Arm Holdings Insider Sells $2.75M Worth of Stock: Analysis
Arm Holdings (ARM) executive vice president and chief financial officer, Jason Child, recently sold shares worth $2.75 million, according to an SEC filing. Child sold 20,160 shares of ARM stock at an average price of $136.50 per share. This is the insider’s second informative sell transaction in November following an earlier sale of about $3 million worth of ARM stock. The company’s stock has seen an 81% gain year-to-date, driven by strong revenue growth from AI enterprise solutions and high-value license agreements.
It’s worth noting that not only Child but other corporate insiders have also taken advantage of ARM’s upward momentum, with $9.7 million worth of stock sold over the past three months. TipRanks’ Insider Trading Activity Tool shows Negative insider confidence in the stock currently. Monitoring insider transactions can provide insights into the company’s prospects, and TipRanks offers daily updates on insider transactions and lists of top corporate insiders, as well as hot stocks with positive insider confidence signals.
Despite insider bearishness, top-rated Wells Fargo analyst Joseph Quatrochi has assigned a Buy rating on ARM stock with a price target of $155 per share, implying a 14% upside potential. Quatrochi is optimistic about Arm’s transition to its newest v9 central processing unit (CPU), which carries higher royalty rates than its predecessor v8.
On Wall Street, ARM stock has a Moderate Buy consensus rating, with 15 Buys, four Holds, and one Sell assigned in the last three months. The average price target of $154.21 suggests a 13.4% upside potential. Investors may find it helpful to stay informed about analyst ratings and insider transactions when considering investment decisions.
