In a recent transaction, James Ralph Scapa, Chief Executive Officer of Altair Engineering Inc. (NASDAQ:ALTR), sold a significant portion of his stock in the company. The sale totaled over $1.2 million, with shares sold at prices ranging from $95.0289 to $95.547.
The transaction, which took place on September 30, 2024, involved the disposal of 6,500 shares at an average price of $0.00, which appears to be related to the conversion of Class B common stock to Class A. Additionally, 5,572 shares were sold at a weighted average price of $95.0289, and another 928 shares at a weighted average price of $95.547. These sales were executed in multiple transactions within the price ranges specified.
It is worth noting that the shares sold are indirectly owned through the James R. Scapa Declaration of Trust dated March 5, 1987, and JRS Investments LLC, entities for which Scapa serves as Trustee and Manager, respectively. He disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein.
The transactions were made pursuant to a plan intended to comply with Rule 10b5-1 of the Exchange Act, previously entered into on March 11, 2024. This rule allows company insiders to set up a predetermined plan to sell company stocks, allowing them to avoid accusations of insider trading.
Following the sale, the total number of Class A Common Stock directly owned by Scapa is 134,045 shares, which includes 88,194 restricted stock units that are unvested. Additionally, there are 1,193 shares indirectly owned, including 20 restricted stock units that are unvested and owned by his wife.
Investors often keep a close eye on insider transactions as they can provide insights into an executive's perspective on the company's current valuation and future prospects. However, such sales do not necessarily indicate a lack of confidence in the company; they could also be part of an individual's personal financial planning strategy.
In other recent news, Altair Engineering Inc. has reported significant growth in its Q2 2024 earnings, with total revenue reaching $148.8 million and software revenue hitting $135.4 million. This 10.6% year-over-year increase in software revenue, which now comprises 91% of the company's total revenue, was largely driven by strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024. The company has also expanded its reach with the acquisition of Metrics Design Automation.
Altair's leadership in data science and machine learning has been recognized by Gartner (NYSE:IT). The company's full-year 2024 guidance includes software revenue of $590 million to $600 million and total revenue of $648 million to $658 million. Adjusted EBITDA for 2024 is projected to be between $136 million and $144 million.
In other developments, Altair acknowledged the ongoing support from Matrix Capital Management, who has decided to maintain its full investment position in the company. This move signals confidence in Altair's market position and future prospects. These recent developments suggest a strong trajectory for Altair Engineering Inc. in the competitive landscape of engineering software solutions.
InvestingPro Insights
To provide additional context to James Ralph Scapa's recent stock sale, let's examine some key financial metrics for Altair Engineering Inc. (NASDAQ:ALTR).
According to InvestingPro data, Altair's market capitalization stands at $7.84 billion, reflecting its significant presence in the engineering software industry. The company's revenue for the last twelve months as of Q2 2024 was $627.21 million, with a modest growth rate of 6.85% over the same period. This steady revenue growth aligns with the company's position as a mature player in its sector.
Altair's gross profit margin is impressive at 80.92%, indicating strong pricing power and efficient cost management in its core operations. This high margin is particularly noteworthy in the competitive software industry and supports the company's ability to invest in research and development.
An InvestingPro Tip highlights that Altair's stock price has shown strong momentum, with a 52.67% return over the past year. This significant appreciation may provide context for why an executive might choose to sell shares, potentially for portfolio diversification or to realize gains.
Another InvestingPro Tip notes that analysts have recently revised their earnings expectations upwards for Altair. This positive sentiment from analysts could suggest confidence in the company's future performance, despite the insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Altair Engineering Inc., providing a deeper dive into the company's financial health and market position.
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