Form 4: Arteris VP Sells Shares Under 10b5-1 Plan

Arteris VP and General Counsel Paul L. Alpern reported the sale of common stock, partially to cover tax liabilities and partially under a pre-arranged 10b5-1 trading plan.

Summary

• Paul L. Alpern, VP and General Counsel of Arteris, Inc. (AIP), reported multiple transactions involving the company's common stock on January 2, 2026.
• Alpern acquired 5,000 shares of common stock through the exercise of derivative securities (options) at an exercise price of $0.56 per share.
• Concurrently, Alpern disposed of a total of 8,309 shares of common stock in several transactions.
• 3,309 shares were sold at a price of $15.4471 per share to satisfy tax liabilities arising from the release of restricted stock units.
• An additional 5,000 shares were sold at a weighted average price of $15.4508 per share, as part of a Rule 10b5-1 trading plan adopted on June 5, 2025.
• Following these transactions, Alpern's direct beneficial ownership of common stock stands at 61,968 shares.
• The derivative securities beneficially owned after the transactions amount to 70,000 shares of common stock with an exercise price of $0.56 and an expiration date of October 23, 2029.

Sentiment

Score: 6

Explanation: The filing reports routine insider transactions, including option exercises and sales for tax purposes and under a pre-arranged 10b5-1 plan. While there's a net reduction in direct holdings, the planned nature of the sales and the tax-related component make this a neutral to slightly positive event, as it reflects standard executive compensation and financial management practices rather than a change in company fundamentals or a strong signal of management's view on future prospects.

Positives

• The exercise of options at a low price of $0.56 per share, significantly below the market sale price of approximately $15.45, indicates a profitable event for the reporting person.
• The use of a Rule 10b5-1 trading plan for a portion of the sales suggests that these transactions were pre-planned and not based on new, material non-public information, which can mitigate negative perceptions of insider selling.

Negatives

• The net effect of the reported transactions is a reduction of 5,000 shares in the reporting person's direct beneficial ownership of Arteris common stock, from 66,968 shares (after option exercise) to 61,968 shares.

Future Outlook

NA

Management Comments

• Shares were sold to satisfy the Reporting Person's tax liability arising as a result of the release of restricted stock units.
• A transaction was made pursuant to a 10b5-1 trading plan that was adopted by the Reporting Person on June 5, 2025.
• The reported price for the 10b5-1 plan sale is a weighted average, with shares sold in multiple transactions ranging from $15.15 to $15.82.

Industry Context

NA

Stakeholder Impact

• Shareholders: The net reduction in insider holdings is minor and largely expected due to tax obligations and a pre-arranged trading plan, thus unlikely to significantly impact shareholder sentiment or company valuation.
• Employees: No direct impact on employees is indicated by this filing.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions, including the exercise of options and subsequent sales for tax obligations and under a pre-arranged 10b5-1 plan. Such transactions are common for executives managing their equity compensation and personal finances. They do not typically signal a change in the company's fundamental outlook or performance. Therefore, based solely on this filing, there is no new information that would warrant a change from a 'hold' recommendation, as it does not provide insights into the company's operational performance, strategic direction, or future prospects.

Keywords

Arteris, AIP, Form 4, Insider Trading, Stock Sale, 10b5-1 Plan, Paul Alpern, Restricted Stock Units, Derivative Securities