Arteris (NASDAQ:AIP) Hits New 12-Month High - Should You Buy?

Key Points

• Arteris shares hit a new 52-week high, trading as high as $20.66 (last $20.30) with a market cap of about $923M and 50-/200-day moving averages of $16.26/$15.39.
• Analysts are split but the consensus rating is Hold with a consensus price target of $20.17 (two Buys, one Hold, one Sell), putting the target roughly in line with the current price.
• The company beat quarterly EPS and revenue estimates, yet insiders sold 623,475 shares in the last quarter (including the CEO's 70,000-share sale), while institutional ownership is high at 64.36% and several funds have recently increased stakes.

Arteris, Inc. (NASDAQ:AIP - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $20.66 and last traded at $20.30, with a volume of 464906 shares traded. The stock had previously closed at $20.17.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AIP. Wall Street Zen raised Arteris from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. Northland Securities set a $24.00 price objective on Arteris in a report on Friday, February 13th. Rosenblatt Securities restated a "buy" rating and set a $20.00 price objective on shares of Arteris in a report on Friday, February 13th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Arteris in a report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Arteris has a consensus rating of "Hold" and a consensus price target of $20.17.

Arteris Stock Performance

The firm has a 50 day moving average of $16.26 and a 200-day moving average of $15.39. The stock has a market capitalization of $922.98 million, a PE ratio of -24.76 and a beta of 1.43.

Arteris (NASDAQ:AIP - Get Free Report) last posted its quarterly earnings results on Thursday, February 12th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $20.14 million during the quarter, compared to analysts' expectations of $18.55 million. On average, sell-side analysts predict that Arteris, Inc. will post -0.73 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO K Charles Janac sold 70,000 shares of the stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $19.04, for a total transaction of $1,332,800.00. Following the completion of the sale, the chief executive officer directly owned 9,119,071 shares in the company, valued at approximately $173,627,111.84. This trade represents a 0.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Bayview Legacy, Llc sold 70,000 shares of the stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $19.04, for a total value of $1,332,800.00. Following the sale, the insider owned 9,119,071 shares of the company's stock, valued at approximately $173,627,111.84. This represents a 0.76% 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 quarter, insiders have sold 623,475 shares of company stock worth $10,549,237. Insiders own 29.10% of the company's stock.

Hedge Funds Weigh In On Arteris

Institutional investors have recently modified their holdings of the company. Westerly Capital Management LLC increased its holdings in Arteris by 109.6% in the 3rd quarter. Westerly Capital Management LLC now owns 1,425,000 shares of the company's stock valued at $14,392,000 after buying an additional 745,000 shares during the period. Nuveen LLC increased its stake in Arteris by 872.3% in the fourth quarter. Nuveen LLC now owns 737,281 shares of the company's stock valued at $11,428,000 after acquiring an additional 661,454 shares during the period. Goldman Sachs Group Inc. increased its stake in Arteris by 144.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,012,670 shares of the company's stock valued at $15,696,000 after acquiring an additional 598,840 shares during the period. Granahan Investment Management LLC increased its stake in Arteris by 725.7% in the third quarter. Granahan Investment Management LLC now owns 621,625 shares of the company's stock valued at $6,278,000 after acquiring an additional 546,341 shares during the period. Finally, Informed Momentum Co LLC bought a new stake in shares of Arteris in the 4th quarter valued at approximately $5,755,000. Institutional investors own 64.36% of the company's stock.

Arteris Company Profile

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.

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