ARM Sees Unusually Large Options Volume (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the recipient of unusually large options trading on Friday. Stock investors bought 90,892 call options on the company. This is an increase of 38% compared to the typical volume of 65,674 call options.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

ARM Stock Performance

NASDAQ ARM opened at $123.70 on Friday. The company has a market capitalization of $130.69 billion, a PE ratio of 164.93, a price-to-earnings-growth ratio of 6.64 and a beta of 4.35. ARM has a 52-week low of $80.00 and a 52-week high of $183.16. The company has a 50-day simple moving average of $117.14 and a 200 day simple moving average of $138.07.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter last year, the business posted $0.39 EPS. ARM’s quarterly revenue was up 26.3% compared to the same quarter last year. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, analysts forecast that ARM will post 0.9 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages recently issued reports on ARM. Benchmark reaffirmed a “hold” rating on shares of ARM in a research report on Thursday. JPMorgan Chase & Co. dropped their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating on the stock in a research note on Thursday. Needham & Company LLC reaffirmed a “hold” rating on shares of ARM in a report on Thursday, November 6th. Citigroup lowered shares of ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Finally, Barclays raised their price target on shares of ARM from $115.00 to $165.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Sixteen equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and an average target price of $160.81.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Amundi raised its stake in ARM by 24.8% in the 1st quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after acquiring an additional 2,345 shares during the period. Empowered Funds LLC lifted its stake in shares of ARM by 28.8% during the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after buying an additional 1,094 shares in the last quarter. Truist Financial Corp boosted its holdings in ARM by 172.4% in the 2nd quarter. Truist Financial Corp now owns 5,415 shares of the company’s stock worth $876,000 after buying an additional 3,427 shares during the period. Ameritas Advisory Services LLC purchased a new position in ARM in the 2nd quarter valued at approximately $75,000. Finally, SteelPeak Wealth LLC bought a new stake in ARM during the 2nd quarter valued at $218,000. Institutional investors own 7.53% of the company’s stock.

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.