Arteris (NASDAQ:AIP) Shares Up 8.4% - Time to Buy?

Key Points

• Arteris shares rose 8.4% in Tuesday trading, reaching an intraday high of $32.92 before last trading around $33.25. Volume was far below normal, with only 30,555 shares changing hands versus an average of 740,947.
• Analysts are mixed but generally constructive on the stock, with recent price targets ranging from $35 to $40. MarketBeat shows a consensus rating of Hold and an average price target of $38.20.
• The company recently beat quarterly expectations, reporting a loss of $0.03 per share versus the expected $0.08 loss and revenue of $22.94 million versus $21.03 million expected. However, insiders have sold shares recently, including a major shareholder and the COO.

Arteris, Inc. (NASDAQ:AIP - Get Free Report)'s stock price traded up 8.4% during mid-day trading on Tuesday . The company traded as high as $32.92 and last traded at $33.2520. 30,555 shares traded hands during mid-day trading, a decline of 96% from the average session volume of 740,947 shares. The stock had previously closed at $30.68.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on AIP shares. Northland Securities set a $38.00 price target on Arteris in a research report on Wednesday, May 13th. TD Cowen lifted their price objective on Arteris from $22.00 to $40.00 and gave the stock a "buy" rating in a report on Wednesday, May 13th. Weiss Ratings cut Arteris from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, May 13th. Oppenheimer began coverage on shares of Arteris in a report on Thursday, July 16th. They set an "outperform" rating and a $40.00 price objective on the stock. Finally, Jefferies Financial Group increased their target price on shares of Arteris from $16.00 to $35.00 and gave the stock a "hold" rating in a research report on Wednesday, May 13th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $38.20.

Arteris Price Performance

The business's 50-day moving average price is $37.27 and its 200 day moving average price is $24.87. The company has a market capitalization of $1.56 billion, a P/E ratio of -42.70 and a beta of 1.92. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.17.

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

Insider Buying and Selling

In other Arteris news, major shareholder Bayview Legacy, Llc sold 125,976 shares of the company's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $35.79, for a total value of $4,508,681.04. Following the transaction, the insider directly owned 8,429,071 shares in the company, valued at $301,676,451.09. This represents a 1.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Laurent R. Moll sold 5,599 shares of the firm's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $38.78, for a total value of $217,129.22. Following the completion of the sale, the chief operating officer directly owned 221,697 shares in the company, valued at approximately $8,597,409.66. The trade was a 2.46% 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. Insiders have sold a total of 1,464,949 shares of company stock valued at $51,104,026 in the last ninety days. 23.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Needham Investment Management LLC grew its stake in Arteris by 2.6% in the 4th 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 in the last quarter. Franklin Resources Inc. grew its position in Arteris by 6.2% in the fourth 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. grew its position in Arteris by 8.2% in the third 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. Westerly Capital Management LLC increased its stake in Arteris by 109.6% in the third quarter. Westerly Capital Management LLC now owns 1,425,000 shares of the company's stock valued at $14,392,000 after acquiring an additional 745,000 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in Arteris by 144.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,012,670 shares of the company's stock valued at $15,696,000 after acquiring an additional 598,840 shares during the last quarter. Hedge funds and other institutional investors own 64.36% of the company's stock.

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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