In a recent transaction, an insider at Altair Engineering Inc. (NASDAQ:ALTR), the Christ Revocable Trust, which is a significant shareholder, has sold a substantial amount of stock in the company. The trust offloaded a total of 87,217 shares at prices that varied between $85.111 and $85.7092, amounting to over $7.4 million.
The sales took place on May 8, 2024, according to the latest filings with the Securities and Exchange Commission. The transactions were executed in multiple parts, with 85,997 shares sold at a weighted average price of $85.111, and an additional 1,220 shares sold at an average of $85.7092. The filing included footnotes indicating that the shares were sold at prices ranging from $84.67 to $85.72 per share.
After the transactions, the Christ Revocable Trust still holds a significant portion of Altair Engineering stock, with 100,000 shares remaining in their possession. This sale represents a notable change in the trust's investment in the company, but the reasons behind the sale have not been disclosed.
Altair Engineering Inc., headquartered in Troy, Michigan, is known for its software and cloud solutions that support product development for a variety of industries. The company's stock performance and insider trading activities are closely watched by investors, as they can provide insights into the company's financial health and future prospects.
Investors and market analysts often monitor insider transactions as they may reflect the insiders' confidence in the company's future performance. However, it's important to note that there can be many reasons for insiders to sell shares, and such transactions do not necessarily indicate a lack of confidence in the company.
The details of the sale, including the exact number of shares sold at each price point within the provided ranges, are available upon request to Altair Engineering, its security holders, or the SEC staff, as per the undertakings mentioned in the footnotes of the filing.
InvestingPro Insights
Amid the recent insider selling at Altair Engineering Inc. (NASDAQ:ALTR), the company's financial metrics provide a broader context for investors. With a market capitalization of $7.07 billion, Altair's valuation is significant in the software and cloud solutions sector. The company's P/E ratio, based on the last twelve months as of Q1 2024, stands at a high 671.33, suggesting that investors have high growth expectations from the company, despite the insider sale activity.
Altair's revenue growth remains steady with a 7.11% increase in the last twelve months as of Q1 2024, reflecting its ability to expand its market footprint. The gross profit margin is notably high at 80.64%, indicating the company's efficiency in maintaining profitability amidst its revenue streams. This is complemented by a robust EBITDA growth of 259.85% in the same period, showcasing the company's operational leverage and potential for reinvestment into its core business operations.
InvestingPro Tips highlight that Altair's stock has experienced a 27.41% increase in price total return over the past year, underscoring a strong market performance. Furthermore, the company's fair value is assessed at $69.11 by InvestingPro, compared to analyst targets of $95, which may suggest room for growth or a reassessment of the stock's potential. For those interested in deeper analysis, InvestingPro offers additional tips, and readers can use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription. There are over 10 additional InvestingPro Tips available for Altair Engineering, providing a comprehensive investment outlook.
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