Arteris (NASDAQ:AIP) Shares Down 7.2% - Time to Sell?

Key Points

• Arteris shares fell 7.2% to $27.63, with trading volume below average. The stock remains well below its 50-day moving average of $35.94 but above its 200-day average of $26.25.
• Analyst sentiment remains generally positive, with five Buy ratings and one Sell rating producing a consensus “Moderate Buy” rating and a $41 price target. However, the company recently missed quarterly EPS expectations, reporting a $0.10 loss per share versus a projected $0.04 loss.
• Insiders have sold heavily, including substantial share sales by the CFO and CEO; insiders sold nearly 1.5 million shares worth $52.2 million over the past 90 days. Institutional investors own 64.36% of the company, with several major firms increasing their positions.

Arteris, Inc. (NASDAQ:AIP - Get Free Report)'s stock price traded down 7.2% on Monday . The stock traded as low as $27.78 and last traded at $27.63. Approximately 486,827 shares traded hands during trading, a decline of 34% from the average daily volume of 737,966 shares. The stock had previously closed at $29.78.

Analyst Ratings Changes

Several research analysts recently issued reports on AIP shares. Northland Securities set a $38.00 price objective on Arteris in a research report on Wednesday, May 13th. Wall Street Zen downgraded Arteris from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Jefferies Financial Group raised Arteris from a "hold" rating to a "buy" rating and boosted their price target for the stock from $35.00 to $50.00 in a report on Friday. Weiss Ratings downgraded Arteris from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, May 13th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $38.00 price objective on shares of Arteris in a research note on Friday. Five research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Arteris currently has an average rating of "Moderate Buy" and a consensus target price of $41.00.

Arteris Stock Down 7.4%

The firm has a market cap of $1.35 billion, a price-to-earnings ratio of -31.80 and a beta of 1.96. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.17. The firm has a fifty day moving average price of $35.94 and a 200-day moving average price of $26.25.

Arteris (NASDAQ:AIP - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.04) by ($0.06). The company had revenue of $24.13 million during the quarter, compared to analysts' expectations of $23.48 million. As a group, sell-side analysts forecast that Arteris, Inc. will post -0.58 EPS for the current year.

Insider Activity at Arteris

In related news, CFO Nicholas B. Hawkins sold 221,035 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $33.40, for a total value of $7,382,569.00. Following the sale, the chief financial officer directly owned 110,600 shares of the company's stock, valued at approximately $3,694,040. This trade represents a 66.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO K Charles Janac sold 192,686 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $36.32, for a total transaction of $6,998,355.52. Following the transaction, the chief executive officer directly owned 8,555,047 shares of the company's stock, valued at $310,719,307.04. This trade represents a 2.20% 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 the last 90 days, insiders have sold 1,498,949 shares of company stock valued at $52,200,293. Insiders own 23.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of AIP. Needham Investment Management LLC boosted its position in shares of Arteris by 2.6% in the fourth quarter. Needham Investment Management LLC now owns 3,411,500 shares of the company's stock worth $52,878,000 after buying an additional 86,500 shares during the period. BlackRock Inc. purchased a new stake in shares of Arteris during the 2nd quarter valued at about $160,129,000. Franklin Resources Inc. lifted its position in Arteris by 6.2% during the 4th quarter. Franklin Resources Inc. now owns 1,743,031 shares of the company's stock worth $27,017,000 after acquiring an additional 101,646 shares in the last quarter. Vanguard Group Inc. lifted its position in Arteris by 8.2% during the 3rd quarter. Vanguard Group Inc. now owns 1,594,402 shares of the company's stock worth $16,103,000 after acquiring an additional 120,947 shares in the last quarter. Finally, Westerly Capital Management LLC boosted 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 worth $14,392,000 after acquiring an additional 745,000 shares during the period. Hedge funds and other 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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