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

Key Points

• ARM Holdings experienced a significant surge in options trading, with traders purchasing 196,815 call options, marking a 298% increase in volume compared to its average.
• Institutional investors have been actively increasing their stakes in ARM, with notable increases from GAMMA Investing LLC (126% growth) and TFC Financial Management Inc. (163.4% growth).
• ARM's stock reached $166.77 after trading up $7.42, with a market capitalization of $176.19 billion and a PE ratio of 252.68.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) saw unusually large options trading on Wednesday. Traders acquired 196,815 call options on the company. This is an increase of 298% compared to the average daily volume of 49,500 call options.

Hedge Funds Weigh In On ARM

Several institutional investors have recently made changes to their positions in ARM. GAMMA Investing LLC grew its holdings in ARM by 126.0% in the 3rd quarter. GAMMA Investing LLC now owns 174 shares of the company's stock worth $25,000 after buying an additional 97 shares in the last quarter. TFC Financial Management Inc. lifted its position in ARM by 163.4% in the first quarter. TFC Financial Management Inc. now owns 266 shares of the company's stock worth $28,000 after purchasing an additional 165 shares during the period. Brooklyn Investment Group acquired a new stake in ARM in the first quarter worth approximately $28,000. Huntington National Bank acquired a new stake in ARM in the second quarter worth approximately $30,000. Finally, N.E.W. Advisory Services LLC acquired a new stake in ARM in the first quarter worth approximately $34,000. 7.53% of the stock is owned by institutional investors.

ARM Price Performance

ARM stock traded up $7.42 during trading on Wednesday, reaching $166.77. 8,804,291 shares of the stock traded hands, compared to its average volume of 5,292,186. The business's 50 day moving average price is $142.78 and its 200-day moving average price is $134.29. The firm has a market capitalization of $176.19 billion, a PE ratio of 252.68, a P/E/G ratio of 9.50 and a beta of 4.10. ARM has a 52-week low of $80.00 and a 52-week high of $182.88.

ARM (NASDAQ:ARM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.01. ARM had a return on equity of 15.56% and a net margin of 16.96%.The company had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same quarter in the previous year, the firm posted $0.40 earnings per share. The firm's quarterly revenue was up 12.1% on a year-over-year basis. On average, equities research analysts predict that ARM will post 0.9 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ARM. Rosenblatt Securities reaffirmed a "buy" rating and set a $180.00 price objective on shares of ARM in a report on Thursday, July 31st. Seaport Res Ptn raised ARM to a "strong-buy" rating in a research report on Monday, August 11th. Guggenheim raised their price target on ARM from $147.00 to $187.00 and gave the stock a "buy" rating in a research report on Monday, June 30th. BNP Paribas Exane raised ARM from a "neutral" rating to an "outperform" rating and set a $210.00 price target for the company in a research report on Wednesday, July 16th. Finally, Raymond James Financial raised their price target on ARM from $140.00 to $165.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $168.52.

ARM Company Profile

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.

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