Arteris (NASDAQ:AIP) Shares Down 6.1% – Should You Sell?

Arteris, Inc. (NASDAQ:AIP)’s stock price was down 6.1% on Tuesday . The company traded as low as $20.50 and last traded at $20.5450. 128,448 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 728,931 shares. The stock had previously closed at $21.88.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on AIP shares. Northland Securities set a $38.00 price objective on shares of Arteris in a research note on Wednesday, May 13th. Oppenheimer initiated coverage on Arteris in a report on Thursday, July 16th. They issued an “outperform” rating and a $40.00 price target for the company. TD Cowen increased their price target on Arteris from $22.00 to $40.00 and gave the stock a “buy” rating in a research note on Wednesday, May 13th. Rosenblatt Securities reissued a “buy” rating and issued a $38.00 price target on shares of Arteris in a research note on Friday, August 7th. Finally, Jefferies Financial Group upgraded Arteris from a “hold” rating to a “buy” rating and upped their price objective for the stock from $35.00 to $50.00 in a report on Friday, August 7th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $41.00.

Arteris Trading Up 0.5%

The firm has a market cap of $1.02 billion, a P/E ratio of -23.95 and a beta of 1.91. The business’s 50-day moving average is $30.68 and its two-hundred day moving average is $27.41. The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 0.03.

Arteris (NASDAQ:AIP) last posted 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). Arteris had a negative net margin of 46.70% and a negative return on equity of 295.96%. The company had revenue of $24.13 million for the quarter, compared to the consensus estimate of $23.48 million. As a group, analysts expect that Arteris, Inc. will post -0.68 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Bayview Legacy, Llc sold 192,686 shares of the business’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $36.32, for a total transaction of $6,998,355.52. Following the transaction, the insider directly owned 8,555,047 shares of the company’s stock, valued at approximately $310,719,307.04. The trade was a 2.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Laurent R. Moll sold 39,541 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $43.15, for a total value of $1,706,194.15. Following the completion of the transaction, the chief operating officer owned 227,296 shares in the company, valued at $9,807,822.40. This represents a 14.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,143,704 shares of company stock valued at $39,820,807. 23.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Arteris

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in Arteris during the 2nd quarter valued at $160,129,000. California State Teachers Retirement System boosted its stake in Arteris by 105,728.3% in the second quarter. California State Teachers Retirement System now owns 1,807,548 shares of the company’s stock worth $87,829,000 after purchasing an additional 1,805,840 shares in the last quarter. Westerly Capital Management LLC grew its holdings in shares of Arteris by 109.6% during the third quarter. Westerly Capital Management LLC now owns 1,425,000 shares of the company’s stock worth $14,392,000 after purchasing an additional 745,000 shares during the last quarter. Nuveen LLC increased its stake in shares of Arteris by 872.3% in the fourth quarter. Nuveen LLC now owns 737,281 shares of the company’s stock valued at $11,428,000 after buying an additional 661,454 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of 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 buying an additional 598,840 shares in the last quarter. 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.