Campbell, CA - In recent transactions, Nicholas B. Hawkins (NASDAQ:HWKN), the Vice President and Chief Financial Officer of Arteris, Inc. (NASDAQ:AIP), sold a total of $40,431 worth of company stock, according to a Form 4 document filed with the Securities and Exchange Commission.
The transactions occurred on two separate dates, with Hawkins selling 3,431 shares of Arteris common stock. On April 2, 2024, he sold 1,704 shares followed by another 1,727 shares at a price of $7.0267 per share, totaling $24,108. Two days later, on April 4, he sold an additional 2,242 shares at a weighted average price of $7.2809, amounting to $16,323.
It's noted that the sales on April 2 were conducted to satisfy tax liabilities related to the release of restricted stock units. The sales on April 4 were made pursuant to a 10b5-1 trading plan adopted by Hawkins on May 12, 2023. This type of trading plan allows company insiders to set up a predetermined schedule for selling shares at a time when they are not in possession of material non-public information, to help avoid potential allegations of insider trading.
In the April 4 transaction, the shares were sold at prices ranging from $7.01 to $7.63. Hawkins has committed to providing full information regarding the number of shares sold at each price upon request.
After these transactions, Hawkins still holds a significant stake in the company, with 262,896 shares, which includes 111,519 restricted stock units.
Investors often monitor insider sales as they can provide insights into an executive's view of the company's current valuation and future prospects. However, sales like these can also be part of normal financial planning and diversification strategies for executives.
Arteris, Inc. specializes in semiconductor and related devices, and is incorporated in Delaware with headquarters in Campbell, California.
InvestingPro Insights
As investors evaluate the recent insider sales at Arteris, Inc. (NASDAQ:AIP), it's crucial to consider the company's financial health and market performance. According to InvestingPro, Arteris holds more cash than debt on its balance sheet, which is a positive sign of financial stability. This could reassure investors that despite the insider sales, the company maintains a solid liquidity position.
Additionally, Arteris has been showing an impressive gross profit margin, with data indicating a gross profit of $48.59 million and a margin of 90.54% for the last twelve months as of Q4 2023. This level of profitability in operations can be a compelling factor for investors looking for companies with efficient cost management and strong pricing power.
On the market performance front, Arteris has experienced a strong return over the last three months, with a price total return of 35.32%. This robust short-term growth might reflect investor confidence and market sentiment towards the company's prospects.
However, it's important to note that analysts do not anticipate the company will be profitable this year, and Arteris is trading at a high Price / Book multiple of 17.69, which might raise concerns over valuation. For those seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights into earnings revisions and profitability over the last twelve months, which can be found at https://www.investing.com/pro/AIP. For investors interested in a comprehensive investment tool, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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