CAMPBELL, CA—Saiyed Atiq Raza, CEO of Arteris, Inc. (NASDAQ:AIP), recently sold 41,439 shares of the company’s stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $10.37, giving a total transaction value of approximately $429,535. The transaction comes as the stock is trading near a 52-week high of $10.70, having delivered an impressive year-to-date return of 74%.
This sale was made pursuant to a predetermined 10b5-1 trading plan, which Raza adopted on June 6, 2024. Following the transaction, Raza owns 690,121 shares indirectly through the Saiyed Atiq Raza and Nandini Saraiya 2012 Revocable Trust. In addition, he directly owns 19,287 Arteris shares. InvestingPro subscribers can access detailed insider trading patterns and 12+ additional key insights about AIP.
Investors often scrutinize such transactions for insight into insider sentiment, although the use of a 10b5-1 plan indicates that the sale was planned in advance. Arteris, based in Campbell, California, operates in the semiconductor sector, providing IP solutions for network-on-chip interconnects. The company maintains impressive gross profit margins of 89% and has a market capitalization of $413 million. According to InvestingProThrough fair value analysis, the stock appears to be trading close to its fair value.
In other recent news, Arteris Inc. reported a good third quarter, with a focus on AI and automotive SoC. The company posted a record annual contract value (ACV) plus royalties of $60.5 million, an 11% year-over-year increase in revenue to $14.7 million and positive free cash flow of $1.1 million. Arteris has also secured significant business with one of the world’s top five technology companies and has received positive feedback on its new NoC Tiling product.
Looking ahead, the company forecasts fourth quarter 2024 ACV plus royalty between $63 million and $67 million and full year 2024 revenue projections between $56.9 million and $57.9 million. However, despite the company’s expansion into the microcontroller market, average selling prices (ASPs) are lower than for complex SoCs.
Arteris also works with 10 of the top 30 chip design technology companies. The company’s bookings for the period are estimated at $23 million to $24 million, reflecting typical seasonal trends with a stronger fourth quarter expected. These are one of the recent developments in the company’s operations.
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