In a recent transaction, an insider at Altair Engineering Inc. (NASDAQ:ALTR), a prominent software company, has sold a significant amount of shares. The transaction involved the sale of the company's Class A Common Stock, totaling over $18 million. This move by the insider is of particular interest to investors and market watchers.
The series of sales occurred on June 11 and 12, 2024. On the first day, the insider sold 48,696 shares at an average price of $92.1911 and another batch of 51,304 shares at an average price of $92.7746. The following day, the transactions continued with 76,384 shares sold at an average price of $97.1172 and 23,616 shares at $97.5854. The prices per share for these transactions ranged from $92.1911 to $97.5854.
While the exact reasons behind the sale are not disclosed, it is common for insiders to sell shares for personal financial management, diversification, and other non-company related reasons. The shares were sold indirectly through trusts, indicating that the insider may be managing or planning their estate and trusts.
Investors often keep a close eye on insider transactions as they can provide insights into an insider’s view of the company’s current valuation and future prospects. However, it is also important to consider the broader context and not to interpret a single transaction as an indicator of the company’s health or future performance.
Altair Engineering Inc. specializes in services and software related to prepackaged software, and it is incorporated in Delaware. The company is known for its advanced engineering software and on-demand computing technologies.
The insider's transactions were filed with the Securities and Exchange Commission, and the details are publicly available for investors who wish to review the full information regarding the number of shares sold at each separate price within the stated ranges.
In other recent news, Altair Engineering Inc. reported impressive financial results for the first quarter of 2024, surpassing its initial guidance. The company's total revenue hit $172.9 million, with software revenue accounting for $158.4 million, indicating a 6.9% year-over-year growth on a constant currency basis. The firm's adjusted EBITDA was reported at $45.8 million, and it concluded the quarter with a substantial cash reserve of $557.6 million.
Altair has been making strategic acquisitions to enhance its data analytics and AI capabilities, signaling a continued commitment to expansion and innovation. The company's recent developments also include the anticipated launch of Altair SimSolid for electronics. Furthermore, Altair won the 2024 Google (NASDAQ:GOOGL) Cloud North America Partner of the Year Award for Diversity, Equity, and Inclusion.
Despite Q2 results falling slightly below expectations due to currency impact and seasonality, Altair remains optimistic about future growth and market opportunities. The company is also expanding its sales approach into new verticals and focusing on executive engagement, positioning itself favorably in sectors such as aerospace and defense. These recent developments underscore Altair's forward-looking approach and its commitment to diversifying its portfolio and enhancing customer engagement.
InvestingPro Insights
As Altair Engineering Inc. (NASDAQ:ALTR) navigates through the insider share sale, investors are keen to understand the company's financial health and market position. According to InvestingPro data, Altair boasts a substantial market capitalization of $7.99 billion, reflecting its significant presence in the software industry. The company's P/E ratio stands at a high 822.97, which has adjusted slightly to 765.96 over the last twelve months as of Q1 2024, indicating investors' high expectations of future earnings growth relative to the current earnings.
InvestingPro Tips suggest that the company's revenue growth remains positive, with a 7.11% increase over the last twelve months leading up to Q1 2024 and a 4.14% quarterly revenue growth in Q1 2024. These figures demonstrate Altair's continuing ability to expand its revenue streams. Moreover, the company's impressive gross profit margin of 80.64% during the same period highlights its efficiency in maintaining profitability amid its revenue growth.
Additionally, Altair's stock has demonstrated robust performance with a 1 Year Price Total Return of 25.25%, closely approaching its 52-week high at 97.72% of the peak value. This could be a testament to investor confidence in the company's trajectory. For those interested in gaining more insights, InvestingPro offers additional tips on Altair and other companies in the sector. Using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking more valuable analytics to inform their investment decisions.
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