Investors Buy Large Volume of Call Options on ARM (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the target of unusually large options trading on Wednesday. Traders acquired 196,815 call options on the company. This is an increase of approximately 298% compared to the typical daily volume of 49,500 call options.

ARM Stock Performance

Shares of ARM opened at $166.77 on Thursday. ARM has a fifty-two week low of $80.00 and a fifty-two week high of $182.88. The company has a market capitalization of $176.19 billion, a price-to-earnings ratio of 252.68, a price-to-earnings-growth ratio of 9.69 and a beta of 4.10. The firm has a 50-day simple moving average of $142.85 and a 200-day simple moving average of $134.51.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, July 30th. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.01. ARM had a net margin of 16.96% and a return on equity of 15.56%. The business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.06 billion. During the same quarter in the prior year, the firm earned $0.40 earnings per share. The business’s quarterly revenue was up 12.1% compared to the same quarter last year. Equities research analysts forecast that ARM will post 0.9 EPS for the current year.

Institutional Investors Weigh In On ARM

Hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC boosted its stake in shares of ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after buying an additional 97 shares during the period. Huntington National Bank acquired a new stake in ARM in the second quarter valued at about $30,000. FWL Investment Management LLC acquired a new stake in ARM in the second quarter valued at about $34,000. Oliver Lagore Vanvalin Investment Group acquired a new stake in ARM in the second quarter valued at about $39,000. Finally, Brooklyn Investment Group acquired a new stake in ARM in the first quarter valued at about $28,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ARM. Seaport Res Ptn upgraded shares of ARM to a “strong-buy” rating in a research note on Monday, August 11th. UBS Group lowered their target price on shares of ARM from $185.00 to $175.00 and set a “buy” rating for the company in a research note on Thursday, July 31st. BNP Paribas upgraded shares of ARM from a “neutral” rating to an “outperform” rating and boosted their target price for the stock from $110.00 to $210.00 in a research note on Wednesday, July 16th. KeyCorp reiterated an “overweight” rating and set a $190.00 target price (up previously from $175.00) on shares of ARM in a research note on Thursday, July 31st. Finally, Evercore ISI boosted their target price on shares of ARM from $173.00 to $178.00 and gave the stock an “outperform” rating in a research note on Thursday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $168.52.

ARM Company Profile

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.