ARM Target of Unusually High Options Trading (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the target of some unusual options trading activity on Thursday. Traders purchased 211,425 put options on the stock. This is an increase of approximately 250% compared to the typical volume of 60,478 put options.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Bank of America reaffirmed a “neutral” rating and issued a $120.00 price objective on shares of ARM in a research note on Tuesday. Raymond James Financial began coverage on shares of ARM in a report on Friday, November 21st. They issued a “hold” rating on the stock. Morgan Stanley dropped their price target on shares of ARM from $180.00 to $171.00 and set an “overweight” rating on the stock in a research report on Thursday, October 9th. Cowen reissued a “buy” rating on shares of ARM in a report on Thursday, November 6th. Finally, The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and lowered their price objective for the stock from $160.00 to $120.00 in a research note on Monday, December 15th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $175.05.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ARM. Sustainable Growth Advisers LP raised its stake in shares of ARM by 116.8% during the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock worth $559,171,000 after purchasing an additional 1,862,626 shares during the period. Capital Research Global Investors purchased a new stake in ARM during the third quarter worth about $243,098,000. Hyperion Asset Management Ltd bought a new stake in ARM in the third quarter worth about $202,980,000. Schroder Investment Management Group boosted its stake in ARM by 41.7% in the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock valued at $767,611,000 after acquiring an additional 1,396,684 shares during the last quarter. Finally, Invesco Ltd. grew its position in shares of ARM by 139.9% during the 2nd quarter. Invesco Ltd. now owns 1,381,906 shares of the company’s stock valued at $223,509,000 after acquiring an additional 805,886 shares during the period. Institutional investors own 7.53% of the company’s stock.

ARM Stock Up 0.1%

ARM stock traded up $0.12 during midday trading on Thursday, hitting $105.11. 5,766,663 shares of the stock were exchanged, compared to its average volume of 4,760,981. ARM has a 52-week low of $80.00 and a 52-week high of $183.16. The business’s 50-day moving average price is $126.29 and its 200-day moving average price is $142.71. The stock has a market capitalization of $111.05 billion, a price-to-earnings ratio of 134.76, a price-to-earnings-growth ratio of 6.29 and a beta of 4.34.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.33 by $0.06. ARM had a net margin of 18.81% and a return on equity of 15.03%. The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter last year, the business posted $0.30 EPS. The company’s revenue for the quarter was up 34.5% on a year-over-year basis. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. On average, sell-side analysts predict that ARM will post 0.9 earnings per share for the current fiscal year.

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.