Arteris (NASDAQ:AIP) Shares Gap Up Following Analyst Upgrade

Key Points

• Arteris shares jumped premarket after Rosenblatt Securities raised its price target from $20 to $38 and reiterated a Buy rating. The stock opened above its prior close and was trading up roughly 5% on the session.
• The company continues to show improved fundamentals, having recently beaten first-quarter expectations on both earnings and revenue. Management also lifted revenue guidance for Q2 and full-year 2026.
• Insider selling was notable, including shares sold by major shareholder Bayview Legacy and director Saiyed Atiq Raza. Despite the sales, insiders still own a large portion of the company, and institutional investors hold the majority of shares overall.

Arteris, Inc. (NASDAQ:AIP - Get Free Report)'s stock price gapped up before the market opened on Wednesday after Rosenblatt Securities raised their price target on the stock from $20.00 to $38.00. The stock had previously closed at $32.43, but opened at $35.43. Rosenblatt Securities currently has a buy rating on the stock. Arteris shares last traded at $34.0860, with a volume of 676,438 shares.

AIP has been the topic of several other reports. Wall Street Zen cut shares of Arteris from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of Arteris in a research report on Monday, April 20th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $35.00 price objective on shares of Arteris in a research note on Wednesday. Finally, Northland Securities set a $24.00 price target on Arteris in a research note on Friday, February 13th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Arteris presently has an average rating of "Hold" and an average target price of $28.38.

Insiders Place Their Bets

In other news, major shareholder Bayview Legacy, Llc sold 70,000 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $31.20, for a total value of $2,184,000.00. Following the sale, the insider owned 9,049,071 shares of the company's stock, valued at $282,331,015.20. The trade was a 0.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Saiyed Atiq Raza sold 90,000 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $28.71, for a total value of $2,583,900.00. Following the sale, the director owned 210,000 shares in the company, valued at approximately $6,029,100. The trade was a 30.00% 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. In the last quarter, insiders have sold 866,923 shares of company stock valued at $18,543,293. Company insiders own 33.70% of the company's stock.

Trending Headlines about Arteris

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris beat Q1 expectations, reporting a smaller loss of $0.03 per share versus the expected $0.08 loss, with revenue of $22.94 million above estimates. Article Title
• Positive Sentiment: Management raised revenue guidance for both Q2 and full-year 2026, signaling confidence in continued demand and execution. Article Title
• Positive Sentiment: Rosenblatt Securities raised its price target on Arteris to $38 from $20 and reiterated a Buy rating, suggesting more upside from recent levels. Article Title
• Neutral Sentiment: The company also released its Q1 earnings call transcript, which may provide additional detail on growth drivers and margin trends. Article Title
• Negative Sentiment: Major shareholder Bayview Legacy, LLC and CEO K. Charles Janac each sold 70,000 shares, a move that can create some concern about insider confidence even though the sales were relatively small versus their remaining holdings. Article Title

Hedge Funds Weigh In On Arteris

Hedge funds have recently modified their holdings of the company. Raymond James Financial Inc. bought a new stake in shares of Arteris during the 2nd quarter valued at $32,000. BNP Paribas Financial Markets raised its stake in Arteris by 75.0% during the 3rd 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 period. Strs Ohio purchased a new position in Arteris during the first quarter valued at approximately $104,000. Penn Capital Management Company LLC bought a new position in shares of Arteris in the third quarter worth approximately $109,000. Finally, Susquehanna Fundamental Investments LLC bought a new position in shares of Arteris in the third quarter worth about $113,000. Hedge funds and other institutional investors own 64.36% of the company's stock.

Arteris Trading Up 5.1%

The firm has a 50 day moving average of $20.37 and a 200-day moving average of $17.15. The company has a market cap of $1.57 billion, a P/E ratio of -40.88 and a beta of 1.93.

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 analysts' consensus estimates of ($0.08) by $0.03. The firm had revenue of $20.14 million for the quarter, compared to the consensus estimate of $18.55 million. Equities analysts predict that Arteris, Inc. will post -0.68 EPS for the current fiscal year.

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.

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