Investors Buy High Volume of Put Options on ARM (NASDAQ:ARM)

Arm Holdings plc (NASDAQ:ARM) was the target of unusually large options trading activity on Friday. Stock investors bought 153,873 put options on the company. This is an increase of 21% compared to the typical volume of 126,875 put options.

ARM Price Performance

Shares of ARM stock traded down 11.25 on Friday, hitting 93.67. The company’s stock had a trading volume of 14,460,743 shares, compared to its average volume of 14,701,270. ARM has a 1 year low of 46.50 and a 1 year high of 164.00. The firm has a fifty day moving average price of 129.00 and a 200-day moving average price of 86.11.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, February 7th. The company reported 0.29 earnings per share for the quarter, topping the consensus estimate of 0.25 by 0.04. The company had revenue of 824.00 million for the quarter, compared to analyst estimates of 762.50 million. The business’s revenue was up 13.8% on a year-over-year basis. Sell-side analysts predict that ARM will post 0.36 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Jennison Associates LLC grew its position in ARM by 15.7% in the fourth quarter. Jennison Associates LLC now owns 7,346,660 shares of the company’s stock worth $552,065,000 after acquiring an additional 994,551 shares during the period. Schroder Investment Management Group acquired a new position in shares of ARM in the 4th quarter valued at $480,194,000. FMR LLC purchased a new position in shares of ARM during the 3rd quarter worth $242,812,000. Wellington Management Group LLP increased its position in shares of ARM by 56.4% during the 4th quarter. Wellington Management Group LLP now owns 4,468,720 shares of the company’s stock worth $335,802,000 after purchasing an additional 1,611,926 shares during the last quarter. Finally, Invesco Ltd. purchased a new stake in ARM in the 3rd quarter valued at about $143,092,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have commented on ARM shares. KeyCorp lifted their price objective on shares of ARM from $120.00 to $135.00 and gave the stock an “overweight” rating in a research note on Monday, April 8th. New Street Research reiterated a “neutral” rating and set a $110.00 price target on shares of ARM in a report on Tuesday, February 27th. BNP Paribas lowered shares of ARM from an “outperform” rating to a “neutral” rating and set a $100.00 price objective on the stock. in a research report on Friday. Evercore ISI started coverage on ARM in a research report on Tuesday. They set an “outperform” rating and a $156.00 target price for the company. Finally, Mizuho increased their price target on ARM from $100.00 to $160.00 and gave the stock a “buy” rating in a report on Thursday, March 7th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating and fourteen have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of 90.28.

About ARM

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.