Executive vice president and chief financial officer at Arm Holdings (ARM), Jason Child, recently sold shares worth $2.75 million. According to the SEC filing, Child sold 20,160 shares of ARM stock at an average price of $136.50 per share.
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Investors should note that this marks the insider’s second informative sell transaction in November. He sold about $3 million worth of ARM stock earlier this month, probably taking advantage of the surge in the company’s share price.
Interestingly, ARM stock has gained 81% year-to-date. The upside is mainly attributed to the company’s strong revenue growth backed by robust demand for its AI enterprise solutions. Further, ARM has signed multiple high-value license agreements, raising confidence about its royalty revenue growth and overall financial outlook.
Bearish Insider Trading Signal
It’s important to highlight that Child is not the only one taking advantage of ARM’s bull run. Overall, corporate insiders have sold $9.7 million worth of stock over the past three months. TipRanks’ Insider Trading Activity Tool shows that insider confidence in the stock is currently Negative.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Top-Rated Wells Fargo Analyst Bullish on ARM Stock
While insiders are bearish on the stock, Top-rated Wells Fargo (WFC) analyst Joseph Quatrochi assigned a Buy rating on ARM with a price target of $155 per share, which implies a 14% upside from the current level (to see Quatrochi’s track record, click here).
The analyst is optimistic about Arm’s transition to its newest v9 central processing unit (CPU), which is used in the iPhone 16 processor and carries higher royalty rates than the predecessor v8.
What Is the Price Target of ARM Stock?
Turning to Wall Street, ARM stock has a Moderate Buy consensus rating based on 15 Buys, four Holds, and one Sell assigned in the last three months. At $154.21, the average Arm Holdings price target implies a 13.4% upside potential.
