Traders Purchase Large Volume of ARM Put Options (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) saw some unusual options trading activity on Wednesday. Traders acquired 93,753 put options on the company. This represents an increase of 74% compared to the typical daily volume of 54,016 put options.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. The Goldman Sachs Group downgraded shares of ARM from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $160.00 to $120.00 in a research note on Monday. Wells Fargo & Company upped their price target on shares of ARM from $190.00 to $195.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. Loop Capital increased their price target on ARM from $155.00 to $180.00 and gave the company a “buy” rating in a research note on Wednesday, November 12th. Bank of America reduced their price objective on ARM from $205.00 to $145.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, Evercore ISI upped their target price on ARM from $173.00 to $178.00 and gave the stock an “outperform” rating in a report on Thursday, September 11th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $178.30.

ARM Stock Down 5.4%

Shares of ARM stock traded down $6.52 during trading hours on Wednesday, hitting $114.58. 8,620,617 shares of the company’s stock traded hands, compared to its average volume of 5,144,330. The stock has a market cap of $121.06 billion, a PE ratio of 146.90, a price-to-earnings-growth ratio of 7.45 and a beta of 4.24. The stock’s 50 day simple moving average is $150.95 and its 200 day simple moving average is $147.51. ARM has a 12 month low of $80.00 and a 12 month high of $183.16.

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

Hedge Funds Weigh In On ARM

A number of hedge funds have recently made changes to their positions in the stock. Compound Planning Inc. boosted its holdings in ARM by 4.6% in the third quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock valued at $222,000 after acquiring an additional 69 shares during the last quarter. Ritholtz Wealth Management raised its holdings in ARM by 3.0% during the 3rd quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock worth $345,000 after purchasing an additional 70 shares during the last quarter. Rathbones Group PLC lifted its position in shares of ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock worth $1,493,000 after purchasing an additional 70 shares during the period. Nwam LLC boosted its stake in shares of ARM by 4.3% in the 3rd quarter. Nwam LLC now owns 1,711 shares of the company’s stock valued at $242,000 after purchasing an additional 71 shares during the last quarter. Finally, Kovack Advisors Inc. boosted its stake in shares of ARM by 2.0% in the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock valued at $510,000 after purchasing an additional 72 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors.

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.