Arteris (NASDAQ:AIP) Shares Gap Up - Still a Buy?

Key Points

• Arteris shares gapped up at the open, rising from a prior close of $32.79 to an open of $35.01 before last trading around $33.55.
• Analyst sentiment is mixed but leans cautious: the stock has an average Hold rating with a $37.75 price target, though TD Cowen and Rosenblatt both recently reiterated Buy ratings and raised targets.
• The company recently posted a smaller-than-expected quarterly loss, with EPS of -$0.03 versus estimates of -$0.08, and revenue of $22.94 million beating expectations.

Arteris, Inc. (NASDAQ:AIP - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $32.79, but opened at $35.01. Arteris shares last traded at $33.5510, with a volume of 41,277 shares.

Analyst Ratings Changes

AIP has been the subject of several analyst reports. Wall Street Zen downgraded shares of Arteris from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Weiss Ratings cut shares of Arteris from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, May 13th. Northland Securities set a $38.00 price objective on Arteris in a research report on Wednesday, May 13th. TD Cowen increased their price objective on Arteris from $22.00 to $40.00 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Finally, Rosenblatt Securities lifted their price objective on Arteris from $20.00 to $38.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. 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. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $37.75.

Arteris Stock Performance

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 company's 50-day moving average is $37.22 and its two-hundred day moving average is $24.31. The company has a market capitalization of $1.56 billion, a P/E ratio of -42.89 and a beta of 1.92.

Arteris (NASDAQ:AIP - Get Free Report) last announced its earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share for the quarter, beating analysts' consensus estimates of ($0.08) by $0.05. The company had revenue of $22.94 million during the quarter, compared to analysts' expectations of $21.03 million. Equities analysts anticipate that Arteris, Inc. will post -0.54 earnings per share for the current fiscal year.

Insider Activity

In other Arteris news, CFO Nicholas B. Hawkins sold 5,377 shares of the firm's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $38.78, for a total transaction of $208,520.06. Following the sale, the chief financial officer owned 103,172 shares in the company, valued at $4,001,010.16. This trade represents a 4.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Paul L. Alpern sold 6,003 shares of Arteris stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $35.91, for a total value of $215,567.73. Following the sale, the vice president directly owned 70,733 shares of the company's stock, valued at approximately $2,540,022.03. This trade represents a 7.82% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,554,949 shares of company stock worth $53,098,426. Corporate insiders own 33.70% of the company's stock.

Institutional Trading of Arteris

Hedge funds have recently bought and sold shares of the company. Huntleigh Advisors Inc. bought a new position in Arteris during the fourth quarter valued at approximately $1,832,000. Nano Cap New Millennium Growth Fund L P bought a new stake in shares of Arteris in the 4th quarter worth approximately $1,914,000. Granahan Investment Management LLC lifted its holdings in shares of Arteris by 725.7% in the 3rd quarter. Granahan Investment Management LLC now owns 621,625 shares of the company's stock worth $6,278,000 after acquiring an additional 546,341 shares during the last quarter. Needham Investment Management LLC boosted its stake in shares of Arteris by 2.6% in the 4th quarter. Needham Investment Management LLC now owns 3,411,500 shares of the company's stock valued at $52,878,000 after purchasing an additional 86,500 shares in the last quarter. Finally, Wesbanco Bank Inc. purchased a new stake in shares of Arteris in the 1st quarter valued at $559,000. 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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