Arteris (NASDAQ:AIP) Posts Quarterly Earnings Results, Meets Expectations

Key Points

• Arteris reported a quarterly loss of ($0.21) EPS, underperforming the consensus estimate of ($0.11).
• The company's shares rose by $3.55 during trading, reaching $13.00, with a trading volume significantly exceeding its average.
• Rosenblatt Securities maintained a "buy" rating and set a price target of $14.00 for Arteris stock.

Arteris (NASDAQ:AIP - Get Free Report) announced its quarterly earnings results on Tuesday, August 5th. The company reported ($0.11) EPS for the quarter, meeting the consensus estimate of ($0.11), Manual reports. The business had revenue of $16.50 million during the quarter, compared to analysts' expectations of $16.35 million. Arteris had a negative return on equity of 8,546.17% and a negative net margin of 52.41%. Arteris updated its FY 2025 guidance to EPS and its Q3 2025 guidance to EPS.

Arteris Stock Up 0.9%

AIP traded up $0.09 during midday trading on Thursday, reaching $9.79. 153,548 shares of the company's stock were exchanged, compared to its average volume of 547,629. The business has a 50-day simple moving average of $9.51 and a two-hundred day simple moving average of $8.27. The firm has a market capitalization of $417.54 million, a price-to-earnings ratio of -11.94 and a beta of 1.45. Arteris has a one year low of $5.46 and a one year high of $14.29.

Analysts Set New Price Targets

A number of analysts have weighed in on AIP shares. Wall Street Zen cut Arteris from a "hold" rating to a "sell" rating in a research report on Friday, August 22nd. Rosenblatt Securities restated a "buy" rating and issued a $14.00 price objective on shares of Arteris in a research note on Wednesday, May 21st. Finally, TD Cowen raised their target price on shares of Arteris from $12.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $15.00.

Insiders Place Their Bets

In related news, CEO K Charles Janac sold 94,245 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $13.49, for a total transaction of $1,271,365.05. Following the completion of the transaction, the chief executive officer owned 189,785 shares in the company, valued at $2,560,199.65. This trade represents a 33.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Saiyed Atiq Raza sold 63,118 shares of the stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $13.07, for a total value of $824,952.26. Following the transaction, the director owned 590,000 shares of the company's stock, valued at $7,711,300. This represents a 9.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 456,043 shares of company stock worth $5,484,028 in the last 90 days. 29.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. acquired a new stake in Arteris in the 2nd quarter valued at about $32,000. Strs Ohio acquired a new stake in shares of Arteris in the first quarter valued at approximately $104,000. Rhumbline Advisers raised its position in Arteris by 35.8% in the 2nd quarter. Rhumbline Advisers now owns 54,416 shares of the company's stock worth $519,000 after purchasing an additional 14,350 shares during the last quarter. Bank of America Corp DE lifted its holdings in Arteris by 11.8% during the 2nd quarter. Bank of America Corp DE now owns 57,093 shares of the company's stock worth $544,000 after buying an additional 6,008 shares in the last quarter. Finally, Ameriprise Financial Inc. acquired a new stake in shares of Arteris in the 2nd quarter valued at $742,000. Institutional investors and hedge funds own 64.36% of the company's stock.

About Arteris

Arteris, Inc provides semiconductor interconnect intellectual property (IP) and System-on-Chip (Soc) Integration Automation software solutions (SIA) in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric technology used in Soc designs and Network-on-Chip (NoC) interconnect IP.