CAMPBELL, CA—Saiyed Atiq Raza, a director of Arteris, Inc. (NASDAQ:AIP), recently sold 41,439 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $10.37, yielding a total transaction value of approximately $429,535. The transaction comes as the stock trades near its 52-week high of $10.70, having delivered an impressive 74% return year-to-date.
This sale was conducted under a pre-established 10b5-1 trading plan, which Raza adopted on June 6, 2024. Following the transaction, Raza holds 690,121 shares indirectly through the Saiyed Atiq Raza and Nandini Saraiya 2012 Revocable Trust. Additionally, he directly owns 19,287 shares of Arteris common stock. 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 pre-planned. Arteris, headquartered in Campbell, California, operates in the semiconductor sector, providing network-on-chip interconnect IP solutions. The company maintains impressive gross profit margins of 89% and has a market capitalization of $413 million. According to InvestingPro's Fair Value analysis, the stock appears to be trading near its fair value.
In other recent news, Arteris Inc. reported a strong third quarter, with a focus on AI and automotive SoC. The company announced record annual contract value (ACV) plus royalties of $60.5 million, a year-over-year revenue increase of 11% to $14.7 million, and a positive free cash flow of $1.1 million. Arteris also secured a significant deal with one of the top five global tech companies and has received positive feedback on its new NoC Tiling product.
Looking ahead, the company forecasts Q4 2024 ACV plus royalties between $63 million to $67 million and full-year revenue projections for 2024 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 is also engaged with 10 out of the top 30 tech companies that are designing chips. 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 among the recent developments in the company's operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.