Billionaire investor Paul Singer, through Elliott Management, exited Arm Holdings and initiated a put option on Hewlett Packard Enterprise. Arm, a UK semiconductor firm majority-owned by SoftBank, has a market cap of $141 billion and saw a significant stock increase post-IPO. Arm reported $1.05 billion in revenue for Q1 FY2026, with adjusted EPS at $0.35.

Arm’s strategic pivot into chip manufacturing led to a stock decline after posting Q2 guidance below expectations. Analysts forecast a 16% YoY EPS decline for fiscal 2026 but anticipate a 68.5% increase in fiscal 2027. Seaport Global initiated coverage on Arm with a “Buy” rating at a $150 price target, while Morgan Stanley maintained an “Overweight” rating with a reduced price target.

ARM stock has a consensus “Moderate Buy” rating, with 19 analysts recommending a “Strong Buy” and 10 suggesting “Hold.” The average analyst price target is $160.24, indicating a potential 20% upside, with a street-high target price of $210 suggesting a 46% rally.

Read more at Yahoo Finance: Billionaire Paul Singer Just Sold This Chip Stock. Should You?