Nicholas B. Hawkins (NASDAQ:HWKN), the Vice President and Chief Financial Officer of Arteris, Inc. (NASDAQ:AIP), has recently sold shares of the company's stock, according to a new SEC filing. Hawkins completed the sale of Arteris stock over two consecutive days, disposing of a total of 5,450 shares.
On the first day, Hawkins sold 1,504 shares at a price of $6.9795 and another 1,484 shares at the same price, totaling approximately $20,854. The following day, he sold an additional 2,462 shares at a weighted average price of $7.2258, amounting to approximately $17,789. The transactions were executed at prices ranging from $7.12 to $7.36, as detailed in the footnotes of the filing.
The sales were part of a planned transaction pursuant to a 10b5-1 trading plan, which Hawkins had adopted on May 12, 2023. A portion of the shares sold were to satisfy the reporting person's tax liability arising from the release of restricted stock units.
After these transactions, Hawkins still holds a substantial number of shares in the company, with the SEC filing showing post-sale ownership of 236,287 shares of Arteris common stock. Investors and followers of Arteris, Inc. can find further details of these transactions in the SEC Form 4 filed by the company.
Arteris, Inc. specializes in semiconductor and related devices, and its stock is publicly traded under the ticker symbol AIP on the NASDAQ exchange. The company is incorporated in Delaware and is headquartered in Campbell, California.
In other recent news, Arteris, Inc. reported a strong first quarter, with an annual contract value plus royalties totaling $58.2 million. Despite a slight decline in total revenue year-over-year, the company maintained positive free cash flow and secured significant licensing deals, half of which enable AI and machine learning designs. Additionally, Arteris has been aiding Esperanto Technologies in enhancing the design process for its next-generation AI and HPC SoCs, using its CSRCompiler software to automate design and integration.
Northland reiterated its Outperform rating on Arteris, reflecting confidence in the company's strategic direction and potential for continued success in the evolving system on chip (SoC) market. The firm noted Arteris's role in enabling faster and more efficient design processes for SoCs, which are integral components in a wide range of electronic devices.
In further developments, Arteris's collaborations, including an expanded partnership with Arm and support for RISC-V processors, highlight its strategic initiatives to capitalize on the growing demand for sophisticated AI chips. The company ended the quarter with a strong balance sheet, holding $53.4 million in cash, cash equivalents, and investments. These recent developments underscore the company's commitment to financial health and its role in the evolving landscape of automated driving and AI.
InvestingPro Insights
Amid the recent share transactions by Arteris, Inc.'s (NASDAQ:AIP) Vice President and Chief Financial Officer, Nicholas B. Hawkins, investors might be seeking additional context to interpret the company's financial health and stock performance. According to InvestingPro data, Arteris currently holds a market capitalization of approximately $277.43 million. The company's impressive gross profit margin stands out at 89.86% for the last twelve months as of Q1 2024, reflecting a strong ability to control costs relative to its revenue, which was reported at $53.46 million for the same period.
Despite these strong margins, Arteris has faced challenges in achieving profitability. The company has not been profitable over the last twelve months, with an operating income margin of -66.44%, and analysts do not anticipate it will be profitable this year. This is mirrored in the company's negative Price/Earnings (P/E) ratio of -7.96, which further adjusts to -7.09 when considering the last twelve months as of Q1 2024. Additionally, the Price/Book ratio is notably high at 29.06, suggesting that the market values the company significantly above its book value.
Investors have seen a large price uptick over the last six months, with a 33.27% return, although the company’s stock has experienced some volatility, with a 1-month price total return of -7.09%. The company does not pay a dividend, which may be a consideration for income-focused investors. For those interested in a deeper dive into Arteris's financials and stock performance, InvestingPro offers additional tips and insights. There are currently 6 more InvestingPro Tips available for Arteris, Inc., which can be found at: https://www.investing.com/pro/AIP. To access these insights and more, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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