Investors Purchase Large Volume of ARM Call Options (NASDAQ:ARM)

Arm Holdings plc (NASDAQ:ARM) saw some unusual options trading on Tuesday. Stock traders acquired 242,898 call options on the company. This is an increase of approximately 44% compared to the typical volume of 168,786 call options.

Hedge Funds Weigh In On ARM

Hedge funds have recently modified their holdings of the company. Janney Montgomery Scott LLC purchased a new position in shares of ARM in the third quarter valued at about $680,000. HighTower Advisors LLC purchased a new position in ARM in the 3rd quarter worth approximately $266,000. Deutsche Bank AG bought a new position in ARM in the 3rd quarter worth approximately $1,790,000. DekaBank Deutsche Girozentrale purchased a new stake in ARM during the 3rd quarter valued at approximately $2,244,000. Finally, PNC Financial Services Group Inc. bought a new stake in shares of ARM during the third quarter valued at approximately $55,000. 7.53% of the stock is currently owned by institutional investors.

ARM Trading Up 8.6 %

Shares of NASDAQ:ARM opened at 174.13 on Wednesday. The firm’s 50 day moving average price is 118.80 and its 200-day moving average price is 106.05. ARM has a twelve month low of 46.50 and a twelve month high of 177.31.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, May 8th. The company reported 0.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of 0.30 by 0.06. ARM had a net margin of 9.46% and a return on equity of 16.94%. The firm had revenue of 928.00 million during the quarter, compared to the consensus estimate of 865.94 million. During the same quarter in the previous year, the firm posted $0.02 EPS. The company’s revenue for the quarter was up 46.6% compared to the same quarter last year. As a group, analysts predict that ARM will post 0.85 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently commented on ARM. Rosenblatt Securities reaffirmed a “buy” rating and set a $180.00 price objective on shares of ARM in a research note on Monday, May 6th. Bank of America increased their price objective on ARM from $150.00 to $180.00 and gave the stock a “buy” rating in a report on Monday. Sanford C. Bernstein boosted their target price on ARM from $72.00 to $92.00 and gave the company an “underperform” rating in a research note on Thursday, May 16th. The Goldman Sachs Group raised their price target on ARM from $110.00 to $143.00 and gave the stock a “buy” rating in a research note on Tuesday, June 11th. Finally, Needham & Company LLC reissued a “hold” rating on shares of ARM in a research report on Thursday, May 9th. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and fourteen have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of 99.48.

ARM Company Profile

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.