Stock Traders Purchase High Volume of ARM Call Options (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the target of unusually large options trading on Thursday. Traders acquired 83,917 call options on the stock. This is an increase of approximately 52% compared to the average daily volume of 55,078 call options.

Insider Activity

In other news, CFO Jason Child sold 21,280 shares of the stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total value of $3,157,313.60. Following the completion of the sale, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. This represents a 10.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Rene A. Haas sold 23,867 shares of the stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the sale, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 62,432 shares of company stock valued at $9,784,330 in the last three months.

Institutional Trading of ARM

Large investors have recently bought and sold shares of the stock. GAMMA Investing LLC grew its position in ARM by 126.0% in the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after acquiring an additional 97 shares during the period. Grey Fox Wealth Advisors LLC acquired a new stake in shares of ARM during the 3rd quarter worth about $28,000. FWL Investment Management LLC acquired a new stake in shares of ARM during the 2nd quarter worth about $34,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of ARM during the 4th quarter worth about $30,000. Finally, Strategic Investment Solutions Inc. IL increased its position in shares of ARM by 238.1% during the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock worth $40,000 after purchasing an additional 200 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

ARM Stock Performance

NASDAQ:ARM opened at $162.33 on Friday. The company has a 50-day moving average of $134.07 and a 200-day moving average of $134.77. The company has a market capitalization of $171.50 billion, a price-to-earnings ratio of 216.44, a PEG ratio of 7.18 and a beta of 3.33. ARM has a 52 week low of $95.32 and a 52 week high of $183.16.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The company’s quarterly revenue was up 26.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.39 earnings per share. Sell-side analysts forecast that ARM will post 0.9 EPS for the current year.

Trending Headlines about ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Strategic backing and ecosystem validation: AMD, Qualcomm and Arm participated in a new funding round for driverless startup Wayve — a show of support for ARM’s relevance in automotive and AI inference use cases, which can bolster licensing demand and design wins in the mobility market. Chip giants back Wayve
• Positive Sentiment: Hardware adoption — Framework 13 gets a 12-core ARM upgrade: The laptop vendor’s option to ship a 12-core ARM configuration highlights expanding OEM adoption of ARM CPUs in mainstream PCs, reinforcing ARM’s ecosystem momentum and potential royalty upside. Framework 13 ARM upgrade
• Positive Sentiment: Arm in robotics and embedded AI: An open-source 6+1 DoF robotic arm project built on ARM-class processors underscores continued penetration of ARM IP in robotics/embodied-AI developer ecosystems — a long-tail revenue and mindshare positive. reBot Arm B601-DM
• Positive Sentiment: Elevated bullish positioning: Unusually large options activity — roughly 83,917 call contracts traded (about 52% above typical volume) — signals short-term bullish sentiment from traders, which can amplify upside volatility and support near-term price gains.
• Neutral Sentiment: General market coverage: Major outlets (CNN) continue to profile ARM as a key chip-design company. Broad coverage keeps investor attention but is informational rather than a direct catalyst. CNN ARM profile
• Neutral Sentiment: Insider sale under a plan: CEO Rene Haas sold 9,299 shares under a pre-arranged Rule 10b5-1 plan (disclosed in an SEC filing). Because it was a planned sale, it’s less indicative of new negative information, but some investors view insider selling as a mild offset to positive news. SEC filing
• Negative Sentiment: Media skepticism from commentators: Jim Cramer expressed skepticism about certain coverage of ARM (calling out Morgan Stanley’s coverage), which could temper sentiment among retail investors and add near-term headwinds to momentum. Jim Cramer commentary

Analyst Ratings Changes

ARM has been the topic of several research analyst reports. JPMorgan Chase & Co. decreased their price target on shares of ARM from $180.00 to $145.00 and set an “overweight” rating on the stock in a research report on Thursday, February 5th. The Goldman Sachs Group raised their price target on shares of ARM from $110.00 to $125.00 and gave the stock a “sell” rating in a research report on Thursday, April 9th. KeyCorp restated an “overweight” rating on shares of ARM in a research report on Thursday, February 5th. Barclays restated an “overweight” rating and set a $165.00 price target on shares of ARM in a research note on Thursday, March 26th. Finally, Benchmark restated a “hold” rating on shares of ARM in a research note on Thursday, February 5th. Eighteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, ARM has an average rating of “Moderate Buy” and an average target price of $174.83.

ARM Company Profile

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.