Campbell, California - In a recent transaction, Nicholas B. Hawkins (NASDAQ:HWKN), the Vice President and Chief Financial Officer of Arteris, Inc. (NASDAQ:AIP), sold 4,958 shares of the company's common stock. The sale, which took place on October 4, 2024, resulted in a total value of over $35,000.
According to the details provided, the shares were sold at a weighted average price of $7.13, with individual sales prices ranging from $7.05 to $7.26. Following this transaction, Hawkins retains ownership of 211,713 shares in the semiconductor company.
The sale was executed under a pre-arranged 10b5-1 trading plan, which Hawkins had adopted on May 20, 2024. Such plans allow company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, to avoid any potential accusations of insider trading.
Investors often monitor insider transactions for insights into a company’s health and the confidence that executives have in their firm's prospects. The transactions are also sometimes viewed as a reflection of an insider's belief in the company's current valuation.
Arteris, specializing in the development of semiconductor technologies, continues to be a key player in the tech industry, with its financial officers' transactions being closely watched by the market for any potential signals.
For those interested in the specifics of the transactions, Hawkins has stated readiness to provide full information regarding the number of shares sold at each separate price within the stated range upon request by the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission.
In other recent news, Arteris, Inc. has reported strong Q2 performance with an annual contract value plus royalties of $60.1 million, and a total revenue for the quarter standing at $14.6 million. This success is attributed to strong demand in the AI and Automotive sectors, the addition of seven new customers, and the signing of four new license deals with existing clients. Additionally, the company confirmed 21 design starts mainly in the AI-enabled autonomous driving sector. Arteris has also announced the appointment of Joachim Kunkel to its Board of Directors, who brings a wealth of experience from his previous roles at Synopsys (NASDAQ:SNPS) and CADIS GmbH. For Q3, Arteris projects its annual contract value plus royalties to range between $58.5 million and $62.5 million, with revenues projected at $14.2 million to $15.2 million. For the full year of 2024, the company's guidance includes an annual contract value plus royalties of $62 million to $68 million and revenue of $56 million to $58 million. These recent developments indicate a positive trajectory for Arteris, Inc. in the semiconductor industry.
InvestingPro Insights
To provide additional context to the recent insider transaction at Arteris, Inc. (NASDAQ:AIP), let's examine some key financial metrics and insights from InvestingPro.
Arteris boasts an impressive gross profit margin of 89.39% for the last twelve months as of Q2 2024, reflecting the company's strong pricing power and efficiency in its core operations. This aligns with one of the InvestingPro Tips, which highlights the company's "impressive gross profit margins."
Despite the strong gross margins, it's worth noting that Arteris is not currently profitable. The company reported a negative operating income of $34.28 million for the last twelve months, resulting in an operating income margin of -64.31%. This financial situation is reflected in another InvestingPro Tip, which states that "analysts do not anticipate the company will be profitable this year."
On a positive note, Arteris has seen a 21.73% price total return year-to-date, indicating investor optimism despite the current lack of profitability. This performance might be influenced by the company's potential for future growth, as suggested by the 3.12% revenue growth over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Arteris, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable when interpreting insider transactions like the recent sale by CFO Nicholas B. Hawkins.
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