In a recent transaction, Arteris, Inc.'s (NASDAQ:AIP) Vice President and General Counsel, Paul L. Alpern, sold shares of the company's stock, totaling approximately $81,512. The transactions occurred on April 1, 2024, and were reported in a Form 4 document filed with the Securities and Exchange Commission.
Alpern sold a total of 11,250 shares of Arteris common stock. The sales were executed in multiple transactions at prices ranging from $7.24 to $7.29 per share. This price range indicates that the executive received an average of roughly between these prices for each share sold.
In addition to the sales, Alpern also executed option exercises on the same day. The options, which were converted to common stock, included 10,000 shares at a price of $0.56 per share, totaling $5,600, and 1,250 shares at a price of $0.60 per share, totaling $750. It is worth noting that these option exercises are separate from the sale transactions and represent the cost to acquire the shares rather than proceeds from selling them.
The Form 4 filing also included a footnote indicating that the sales were made pursuant to a 10b5-1 trading plan adopted by Alpern on August 16, 2023. Such trading plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing a defense against potential accusations of insider trading.
The filing further mentioned that the price reported for the larger sale transaction is a weighted average price. Alpern has committed to providing full information regarding the number of shares sold at each separate price within the reported range upon request.
Investors and followers of Arteris, Inc. may find this information relevant as it provides insight into the actions of key executives and their perspectives on the company's stock value. It's important to note that insider transactions can vary in motivation and may not always be indicative of the company's future performance.
For more detailed information, interested parties can refer to the full Form 4 filing available on the Securities and Exchange Commission's website.
InvestingPro Insights
As investors digest the recent insider transactions at Arteris, Inc., it's valuable to consider the company's financial standing and market performance. According to InvestingPro, Arteris boasts an impressive gross profit margin, which stands at a robust 90.54% for the last twelve months as of Q4 2023. This figure is a testament to the company's ability to maintain profitability on its core operations, which could be a reassuring signal to investors concerned about recent insider sales.
Moreover, Arteris has demonstrated strong market performance over the past year, with a one-year price total return of 67.85%. This indicates that despite any short-term fluctuations, the company's stock has provided significant returns to shareholders over the longer term. Additionally, Arteris has been trading at a high Price/Book multiple of 17.79, suggesting that investors are willing to pay a premium for the company's assets relative to its book value.
An InvestingPro Tip worth mentioning is that the company holds more cash than debt on its balance sheet, which provides a cushion against market volatility and financial uncertainties. This could be particularly reassuring given the insider selling activity. Another tip from InvestingPro is that three analysts have revised their earnings upwards for the upcoming period, hinting at potential optimism about the company's future financial performance.
Arteris's next earnings date is set for May 7, 2024, and investors may want to keep an eye on this event for further clues about the company's trajectory. For those looking for more in-depth analysis and additional insights, InvestingPro offers 6 more tips on Arteris, Inc., which can be accessed with a subscription. To gain further advantage, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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