Traders Buy High Volume of ARM Call Options (NASDAQ:ARM)

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) was the target of unusually large options trading on Friday. Traders bought 90,892 call options on the company. This represents an increase of approximately 38% compared to the typical volume of 65,674 call options.

More ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Q3 results beat top- and bottom-line estimates; revenue jumped ~26%, supporting the narrative of durable growth and stronger AI-related demand. Guidance for Q4 EPS was given (0.540–0.620), helping investor confidence. Is ARM Stock a Buy, Hold, or Sell After Stellar Q3 Earnings?
• Positive Sentiment: Analysts publicly praised the results and highlighted ARM’s AI potential, which supported intraday buying interest. Arm rallies after analysts praise results, citing AI potential
• Positive Sentiment: CEO Rene Haas emphasized rapid growth in ARM’s data-center business (“exploding”), reinforcing the long-term AI/data-center growth thesis. Arm CEO Says Data Center Business Is ‘Exploding’
• Positive Sentiment: Unusually large call-option activity — ~90,892 calls traded (≈+38% vs. average) — indicates speculative bullish positioning that can amplify upward moves in the underlying stock.
• Neutral Sentiment: Multiple brokerages trimmed price targets (JPMorgan, TD Cowen, Wells Fargo, Mizuho, Rosenblatt) but largely retained buy/overweight ratings; the cuts reflect stretched valuation vs. near-term licensing/macro risk while keeping upside cases intact.
• Neutral Sentiment: One shop upgraded ARM to buy (New Street), adding to mixed analyst activity that can support momentum but also shows divergent views on near-term risks.
• Neutral Sentiment: Reported short-interest data in the feed appears anomalous/unclear (shows zero), so it doesn’t provide a reliable contrarian signal today.
• Negative Sentiment: After-hours weakness followed the release as licensing revenue narrowly missed estimates; that headline pressure weighed on sentiment and triggered an early sell-off. Shares of Arm plunge 8% after licensing revenue misses estimates, Qualcomm outlook adds pressure
• Negative Sentiment: Industry reports warn a memory shortage is constraining smartphone production, which could depress handset-related royalties and weigh on ARM’s near-term licensing growth. Qualcomm, Arm bear brunt of memory shortage as smartphone chip sales disappoint

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating in a research note on Thursday. UBS Group dropped their price target on ARM from $175.00 to $170.00 and set a “buy” rating on the stock in a research note on Thursday. KeyCorp reaffirmed an “overweight” rating on shares of ARM in a research report on Thursday. TD Cowen reduced their price objective on ARM from $190.00 to $165.00 and set a “buy” rating for the company in a report on Thursday. Finally, Barclays upped their price objective on ARM from $115.00 to $165.00 and gave the company an “overweight” rating in a report on Thursday, November 6th. Sixteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $160.81.

Institutional Trading of ARM

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

ARM Price Performance

NASDAQ ARM opened at $123.70 on Friday. The business has a fifty day moving average price of $117.14 and a two-hundred day moving average price of $137.94. The stock has a market capitalization of $130.69 billion, a PE ratio of 164.93, a PEG ratio of 7.41 and a beta of 4.35. ARM has a fifty-two week low of $80.00 and a fifty-two week high of $183.16.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, February 4th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The business’s revenue for the quarter was up 26.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.39 earnings per share. ARM has set its Q4 2026 guidance at 0.540-0.620 EPS. As a group, sell-side analysts expect that ARM will post 0.9 earnings per share for the current year.

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.