Arteris (NASDAQ:AIP) Sets New 1-Year High - Here's Why

Key Points

• 52-week high — Arteris hit a new 52-week high of $24.10 (last $23.58) on heavy volume, trading well above its 50- and 200-day averages and currently above the consensus price target of $20.17, with a market cap of about $1.07 billion.
• Earnings beat but still unprofitable — In the quarter reported Feb. 12 Arteris posted EPS of ($0.05) versus consensus ($0.08) and revenue of $20.14M versus $18.55M, though analysts still expect a full-year loss and the company shows a negative P/E (-28.76).
• Insider selling amid institutional ownership — Insiders have sold 731,923 shares (~$12.9M) in the last 90 days (including recent sales by the COO and a director), while insiders still hold 33.7% and institutional investors own about 64.36% of the stock.

Arteris, Inc. (NASDAQ:AIP - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The company traded as high as $24.10 and last traded at $23.58, with a volume of 723803 shares traded. The stock had previously closed at $22.63.

Analyst Upgrades and Downgrades

AIP has been the topic of a number of research reports. Rosenblatt Securities restated a "buy" rating and issued a $20.00 price objective on shares of Arteris in a report on Friday, February 13th. Wall Street Zen upgraded Arteris from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Arteris in a report on Wednesday, January 21st. Finally, Northland Securities set a $24.00 price objective on Arteris in a report on Friday, February 13th. Two research 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 data from MarketBeat.com, Arteris currently has a consensus rating of "Hold" and a consensus price target of $20.17.

Arteris Price Performance

The firm has a fifty day simple moving average of $16.88 and a 200 day simple moving average of $15.76. The company has a market cap of $1.07 billion, a price-to-earnings ratio of -28.76 and a beta of 1.43.

Arteris (NASDAQ:AIP - Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The company reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.08) by $0.03. The company had revenue of $20.14 million for the quarter, compared to analyst estimates of $18.55 million. Analysts expect that Arteris, Inc. will post -0.68 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Laurent R. Moll sold 13,448 shares of the firm's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $20.03, for a total value of $269,363.44. Following the sale, the chief operating officer owned 265,530 shares in the company, valued at approximately $5,318,565.90. This trade represents a 4.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Raman Chitkara sold 5,000 shares of the firm's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $20.05, for a total transaction of $100,250.00. Following the completion of the sale, the director owned 152,867 shares in the company, valued at approximately $3,064,983.35. The trade was a 3.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 731,923 shares of company stock valued at $12,913,251 in the last 90 days. 33.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Arteris

Hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Financial Inc. acquired a new stake in shares of Arteris in the second quarter worth $32,000. BNP Paribas Financial Markets grew its stake in shares of Arteris by 75.0% in the third quarter. BNP Paribas Financial Markets now owns 6,053 shares of the company's stock worth $61,000 after acquiring an additional 2,595 shares during the last quarter. Strs Ohio acquired a new stake in shares of Arteris in the first quarter worth $104,000. Penn Capital Management Company LLC acquired a new stake in shares of Arteris in the third quarter worth $109,000. Finally, Susquehanna Fundamental Investments LLC acquired a new stake in shares of Arteris in the third quarter worth $113,000. Institutional investors and hedge funds 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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