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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the recipient of some unusual options trading on Wednesday. Traders acquired 87,690 call options on the company. This represents an increase of 35% compared to the average volume of 64,932 call options.

Insider Buying and Selling

In related news, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $180.00, for a total value of $3,830,400.00. Following the sale, the chief financial officer directly owned 153,426 shares in the company, valued at $27,616,680. The trade was a 12.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of ARM stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $160.85, for a total value of $1,495,744.15. Following the completion of the sale, the chief executive officer owned 273,680 shares in the company, valued at approximately $44,021,428. This trade represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 83,712 shares of company stock worth $13,614,730.

Hedge Funds Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in ARM. Amundi increased its stake in ARM by 24.8% in the first quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after purchasing an additional 2,345 shares during the last quarter. Empowered Funds LLC increased its stake in ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. increased its stake in ARM by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock worth $393,000 after acquiring an additional 200 shares during the last quarter. Bank of Nova Scotia acquired a new stake in ARM during the second quarter worth about $556,000. Finally, State Street Corp increased its stake in ARM by 14.7% during the second quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after acquiring an additional 56,656 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Trading Up 11.6%

Shares of NASDAQ ARM traded up $24.24 during trading on Wednesday, reaching $233.08. The company had a trading volume of 9,086,035 shares, compared to its average volume of 7,319,286. ARM has a twelve month low of $100.02 and a twelve month high of $237.68. The stock has a market capitalization of $246.25 billion, a PE ratio of 310.77, a price-to-earnings-growth ratio of 9.16 and a beta of 3.40. The stock has a 50-day moving average price of $150.26 and a two-hundred day moving average price of $137.61.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the previous year, the firm posted $0.39 earnings per share. The business’s revenue for the quarter was up 26.3% compared to the same quarter last year. On average, sell-side analysts predict that ARM will post 0.85 EPS for the current year.

ARM News Summary

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Mizuho raised its price target to $255 and kept an “outperform” rating, signaling analyst conviction and providing fresh upside guidance for the stock. Mizuho raises ARM price target
• Positive Sentiment: A sector rally led by AMD’s strong forecast pushed chip names higher; reports show ARM jumping materially on the move as investors price in sustained AI infrastructure demand. This market momentum is a near?term catalyst. AMD forecast sparks AI-driven rally
• Neutral Sentiment: Multiple outlets are flagging ARM’s earnings release and strategic pivot into data?center CPUs — the story is front?and?center for investors but outcomes remain uncertain until results and guidance land. Arm Reports Earnings as It Shifts Its Business Model
• Neutral Sentiment: Analysts and market previews expect a sizable post?earnings move, so trading may be volatile around the release even if results are broadly in line. How Much Is Arm Holdings Stock Expected to Move After Earnings?
• Neutral Sentiment: ARM shares have risen despite a modest TSMC contract exit; the market appears focused more on growth/AI catalysts than that isolated headwind. Arm shares climb despite TSMC’s exit
• Negative Sentiment: ARM’s move to design in?house AI/data?center CPUs could increase revenue capture but risks putting it in direct competition with major customers and raises execution risk — a key downside scenario investors are weighing. How Arm’s First In?House AI Data Center CPU Could Impact Investors
• Negative Sentiment: Earnings previews (e.g., Zacks) note mixed odds for an upside beat despite healthy revenue growth, so a conservative print or weak guidance could quickly reverse gains. Will Top?Line Improvement Aid ARM Q4 Earnings?

Wall Street Analyst Weigh In

A number of research firms have commented on ARM. Morgan Stanley reiterated an “equal weight” rating and set a $150.00 target price (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. KeyCorp reiterated an “overweight” rating on shares of ARM in a research report on Thursday, February 5th. Rosenblatt Securities reiterated a “buy” rating and set a $175.00 target price on shares of ARM in a research report on Wednesday, March 25th. The Goldman Sachs Group boosted their target price on ARM from $110.00 to $125.00 and gave the stock a “sell” rating in a research report on Thursday, April 9th. Finally, Benchmark reiterated a “hold” rating on shares of ARM in a research report on Thursday, February 5th. Eighteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $177.75.

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.