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

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) was the target of unusually large options trading on Monday. Traders acquired 102,285 call options on the company. This is an increase of 27% compared to the average volume of 80,446 call options.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ARM. Jefferies Financial Group reiterated a “buy” rating and issued a $320.00 price target on shares of ARM in a research report on Monday, July 20th. Piper Sandler initiated coverage on ARM in a report on Wednesday, September 9th. They set an “overweight” rating and a $320.00 target price on the stock. Guggenheim reaffirmed a “buy” rating and issued a $255.00 price target on shares of ARM in a research note on Thursday, July 30th. TD Cowen reduced their price objective on shares of ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Finally, Susquehanna boosted their target price on shares of ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $305.72.

Insider Transactions at ARM

In other ARM news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $255.33, for a total transaction of $2,655,432.00. Following the completion of the transaction, the chief financial officer directly owned 163,832 shares of the company’s stock, valued at $41,831,224.56. The trade was a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On ARM

A number of institutional investors have recently made changes to their positions in the stock. Paragon Capital Management Inc. lifted its holdings in ARM by 40.4% in the first quarter. Paragon Capital Management Inc. now owns 10,609 shares of the company’s stock valued at $1,605,000 after buying an additional 3,055 shares during the period. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new position in shares of ARM in the 4th quarter worth about $955,000. SBI Okasan Asset Management Co.Ltd. acquired a new position in shares of ARM in the 4th quarter valued at about $699,000. Capital Research Global Investors lifted its stake in shares of ARM by 5.1% in the 4th quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock valued at $197,332,000 after purchasing an additional 86,978 shares during the period. Finally, BNP Paribas boosted its position in shares of ARM by 36.3% during the 4th quarter. BNP Paribas now owns 13,425 shares of the company’s stock valued at $1,468,000 after purchasing an additional 3,573 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Trading Up 15.8%

ARM traded up $43.43 during trading on Monday, reaching $319.04. 8,649,172 shares of the company’s stock were exchanged, compared to its average volume of 7,772,470. ARM has a one year low of $100.02 and a one year high of $452.70. The firm has a fifty day moving average price of $259.66 and a two-hundred day moving average price of $248.00. The stock has a market capitalization of $340.76 billion, a PE ratio of 328.83, a price-to-earnings-growth ratio of 8.17 and a beta of 3.89.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter last year, the firm earned $0.35 earnings per share. The company’s revenue for the quarter was up 22.4% on a year-over-year basis. Sell-side analysts expect that ARM will post 1.15 earnings per share for the current year.

About ARM

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.