Arteris (NASDAQ:AIP) Stock Price Down 9% on Insider Selling

Arteris, Inc. (NASDAQ:AIP)’s stock price was down 9% on Tuesday after an insider sold shares in the company. The company traded as low as $31.36 and last traded at $31.6980. Approximately 464,729 shares traded hands during trading, a decline of 38% from the average session volume of 744,900 shares. The stock had previously closed at $34.82.

Specifically, CFO Nicholas B. Hawkins sold 5,377 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $38.78, for a total transaction of $208,520.06. Following the sale, the chief financial officer directly owned 103,172 shares in the company, valued at approximately $4,001,010.16. This represents a 4.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Paul L. Alpern sold 3,648 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $38.78, for a total value of $141,469.44. Following the sale, the vice president directly owned 76,736 shares in the company, valued at $2,975,822.08. This trade represents a 4.54% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, COO Laurent R. Moll sold 5,599 shares of Arteris stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $38.78, for a total transaction of $217,129.22. Following the sale, the chief operating officer directly owned 221,697 shares in the company, valued at $8,597,409.66. This trade represents a 2.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Ratings Changes

AIP has been the subject of a number of research reports. Northland Securities set a $38.00 price objective on Arteris in a research note on Wednesday, May 13th. Jefferies Financial Group raised their price target on Arteris from $16.00 to $35.00 and gave the stock a “hold” rating in a report on Wednesday, May 13th. Wall Street Zen downgraded Arteris from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Weiss Ratings downgraded Arteris from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, May 13th. Finally, TD Cowen increased their price objective on Arteris from $22.00 to $40.00 and gave the stock a “buy” rating in a research report on Wednesday, May 13th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $37.75.

More Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris recently reported quarterly results that beat expectations, with a smaller-than-expected loss and revenue above analyst estimates, which supports the longer-term investment case. Arteris earnings and stock overview
• Neutral Sentiment: Analysts currently have a mixed view on Arteris, with a consensus rating of Hold and a price target near recent trading levels, suggesting valuation is still being debated. Arteris analyst ratings
• Negative Sentiment: CEO K. Charles Janac sold 192,686 shares, and CFO Nicholas B. Hawkins sold 5,377 shares, both disclosed as part of tax-related equity award withholding, which can still raise concern when multiple insiders sell at once. CEO SEC filing CFO SEC filing
• Negative Sentiment: VP Paul Alpern and COO Laurent R. Moll also sold shares, adding to the perception of broad insider distribution rather than insider accumulation. VP SEC filing
• Negative Sentiment: Major shareholder Bayview Legacy, LLC sold 192,686 shares, which may add extra pressure because large-holder selling can signal reduced conviction even when the move is disclosed for compliance reasons. Major shareholder SEC filing

Arteris Stock Down 9.0%

The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.17. The firm has a market cap of $1.46 billion, a price-to-earnings ratio of -40.19 and a beta of 1.92. The firm has a 50 day moving average price of $36.53 and a 200-day moving average price of $23.67.

Arteris (NASDAQ:AIP) last posted its earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.05. The company had revenue of $22.94 million during the quarter, compared to analysts’ expectations of $21.03 million. On average, equities analysts forecast that Arteris, Inc. will post -0.54 EPS for the current year.

Hedge Funds Weigh In On Arteris

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC acquired a new stake in Arteris in the first quarter valued at approximately $1,621,000. Strs Ohio bought a new stake in shares of Arteris in the 1st quarter valued at approximately $104,000. Geode Capital Management LLC increased its stake in Arteris by 4.8% during the second quarter. Geode Capital Management LLC now owns 652,754 shares of the company’s stock valued at $6,222,000 after purchasing an additional 30,018 shares during the last quarter. Rhumbline Advisers grew its position in shares of Arteris by 35.8% during the 2nd quarter. Rhumbline Advisers now owns 54,416 shares of the company’s stock valued at $519,000 after buying an additional 14,350 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Arteris by 8.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 320,332 shares of the company’s stock worth $3,053,000 after purchasing an additional 25,448 shares during the period. 64.36% of the stock is currently owned by hedge funds and other institutional investors.

About Arteris

Arteris, Inc is a fabless semiconductor intellectual property (IP) company specializing in on-chip interconnect solutions and system IP for advanced integrated circuits. The company’s core products include its FlexNoC network-on-chip (NoC) fabrics, Ncore cache coherent interconnect IP, and CodaCache memory subsystem IP. These technologies enable semiconductor and systems companies to design scalable, energy-efficient chips for applications ranging from automotive and artificial intelligence (AI) to 5G communications and high-performance computing.

Founded in 2003 and headquartered in Santa Clara, California, Arteris serves a global customer base across North America, Europe, and Asia.