Teresa A. Harris, a director at Altair Engineering Inc. (NASDAQ:ALTR), recently sold a portion of her holdings in the company. On November 5, Harris sold 620 shares of Class A Common Stock at a price of $104.10 per share, amounting to a total transaction value of $64,542. This sale was conducted under a pre-established trading plan compliant with Rule 10b5-1, which Harris entered into on November 15, 2023.
Additionally, Harris executed stock options to acquire 620 shares at an exercise price of $4.52 per share. Following these transactions, Harris holds 21,242 shares of Altair Engineering, which includes 2,347 restricted stock units that remain unvested.
In other recent news, Altair Engineering Inc. has been the focus of several important developments. The company has entered into a definitive agreement to be acquired by Siemens (ETR:SIEGn) for $10.6 billion, reflecting an acquisition price of $113 per share, as confirmed by RBC Capital's adjusted price target. This deal is expected to be finalized in the latter half of 2025.
Altair's Q2 2024 earnings showed a substantial increase with total revenue reaching $148.8 million, primarily driven by strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024. However, following the announcement of its acquisition by Siemens, Altair's stock was downgraded from Outperform to Market Perform by William Blair.
Altair has also made significant strides in quantum computing, particularly in computational fluid dynamics, in collaboration with the Technical University of Munich. This breakthrough could notably increase the model size and scalability of simulations compared to classical computing methods.
Matrix Capital Management has decided to maintain its full investment position in Altair, reinforcing the company's position in the computational intelligence landscape. These are the recent developments that continue to shape Altair's trajectory in the engineering software solutions market.
InvestingPro Insights
As Teresa A. Harris adjusts her position in Altair Engineering Inc. (NASDAQ:ALTR), investors may find value in examining the company's current financial landscape. According to InvestingPro data, Altair boasts a market capitalization of $8.9 billion, reflecting its significant presence in the engineering software sector. The company's revenue growth is noteworthy, with a 13.02% increase in the most recent quarter, outpacing its 7.15% growth over the last twelve months.
Altair's robust gross profit margin of 81.29% underscores its operational efficiency and pricing power within the industry. This strong margin contributes to the company's ability to invest in innovation and maintain its competitive edge. An InvestingPro Tip highlights that Altair has demonstrated consistent revenue growth over the past three years, suggesting a solid trajectory that may interest long-term investors.
Despite a high P/E ratio of 264.66, which might raise eyebrows, another InvestingPro Tip points out that analysts have recently revised their earnings estimates upwards for Altair. This positive sentiment aligns with the stock's impressive 56.23% total return over the past year, significantly outperforming broader market indices.
For those seeking a deeper understanding of Altair's potential, InvestingPro offers additional tips and metrics beyond what's mentioned here. In fact, there are 14 more InvestingPro Tips available for Altair Engineering, providing a comprehensive view for investors looking to make informed decisions.
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