ARM Sees Unusually Large Options Volume (NASDAQ:ARM)

Arm Holdings plc (NASDAQ:ARM) was the recipient of unusually large options trading activity on Wednesday. Stock investors acquired 91,449 call options on the company. This represents an increase of approximately 42% compared to the average daily volume of 64,522 call options.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ARM. Federation des caisses Desjardins du Quebec grew its stake in shares of ARM by 13.8% in the first quarter. Federation des caisses Desjardins du Quebec now owns 9,642 shares of the company’s stock worth $1,030,000 after purchasing an additional 1,166 shares in the last quarter. Stony Point Capital LLC lifted its holdings in ARM by 46.4% in the first quarter. Stony Point Capital LLC now owns 114,992 shares of the company’s stock worth $12,280,000 after purchasing an additional 36,459 shares during the period. Vident Advisory LLC lifted its holdings in ARM by 87.5% in the first quarter. Vident Advisory LLC now owns 236,312 shares of the company’s stock worth $25,236,000 after purchasing an additional 110,290 shares during the period. Driehaus Capital Management LLC acquired a new stake in ARM in the first quarter worth about $2,063,000. Finally, Gordian Capital Singapore Pte Ltd lifted its holdings in ARM by 1,257.7% in the first quarter. Gordian Capital Singapore Pte Ltd now owns 1,317 shares of the company’s stock worth $141,000 after purchasing an additional 1,220 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on ARM shares. Citigroup decreased their price target on shares of ARM from $200.00 to $170.00 and set a “buy” rating for the company in a research note on Thursday, May 8th. KeyCorp decreased their price target on shares of ARM from $195.00 to $175.00 and set an “overweight” rating for the company in a research note on Thursday, May 8th. Loop Capital decreased their price target on shares of ARM from $195.00 to $155.00 and set a “buy” rating for the company in a research note on Tuesday. Cfra Research upgraded shares of ARM to a “hold” rating in a research note on Friday, March 21st. Finally, Bank of America reduced their target price on shares of ARM from $144.00 to $135.00 and set a “buy” rating for the company in a research note on Thursday, May 8th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $152.76.

ARM Stock Down 0.3%

ARM stock opened at $133.07 on Friday. ARM has a 52-week low of $80.00 and a 52-week high of $188.75. The company has a market capitalization of $139.44 billion, a PE ratio of 175.09, a P/E/G ratio of 6.33 and a beta of 4.39. The stock’s 50 day moving average is $111.11 and its two-hundred day moving average is $131.75.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $0.55 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.03. ARM had a return on equity of 11.94% and a net margin of 21.82%. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the previous year, the business earned $0.36 EPS. The business’s quarterly revenue was up 33.7% on a year-over-year basis. As a group, sell-side analysts anticipate that ARM will post 0.9 EPS for the current year.

About ARM

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.