The Christ Revocable Trust, a significant shareholder of Altair Engineering Inc. (NASDAQ:ALTR), recently sold a substantial portion of its holdings in the company. According to a regulatory filing, the trust sold a total of 100,000 shares of Altair's Class A Common Stock on October 23, 2024. The sales were executed at prices ranging from $101.92 to $109.13 per share, amounting to a total transaction value of approximately $10.65 million.
Following these transactions, the trust now holds no shares in Altair Engineering. The sales were conducted over multiple transactions, with the trust disposing of shares at varying price points within the specified range. The trust had previously held a significant portion of Altair's stock, but this recent activity marks a complete divestment.
Altair Engineering, headquartered in Troy, Michigan, is a provider of software and cloud solutions in the engineering sector. The company's stock is listed on the NASDAQ under the ticker symbol ALTR.
In other recent news, Altair Engineering Inc. has been in the spotlight due to potential acquisition interest, robust Q2 2024 earnings, and significant advancements in quantum computing. Reports suggest that Altair is considering expressions of takeover interest, with Oppenheimer maintaining a positive stance on the company and pointing to strategic buyers as probable suitors. Meanwhile, Altair reported a substantial increase in Q2 2024 earnings, with total revenue reaching $148.8 million and software revenue hitting $135.4 million, marking a 10.6% year-over-year increase.
The company's growth was primarily driven by strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024. In collaboration with the Technical University of Munich, Altair made a breakthrough in quantum computing, particularly in computational fluid dynamics. This development could significantly increase the model size and scalability of simulations compared to classical computing methods.
Furthermore, Altair acknowledged the ongoing support from Matrix Capital Management, which decided to maintain its full investment position in the company. These recent developments highlight the company's progress in its field and its potential for future growth.
InvestingPro Insights
The recent sale of 100,000 shares by the Christ Revocable Trust comes at a time when Altair Engineering (NASDAQ:ALTR) is experiencing notable market performance. According to InvestingPro data, Altair's stock has shown impressive gains, with a 75.03% total return over the past year. This strong performance is further evidenced by the stock trading at 92.58% of its 52-week high, suggesting investor confidence in the company's prospects.
Altair's financial metrics reveal a company with robust revenue and profitability. The company reported revenue of $627.21 million in the last twelve months as of Q2 2024, with a healthy gross profit margin of 80.92%. This high margin indicates Altair's ability to maintain pricing power in the competitive engineering software market.
InvestingPro Tips highlight additional insights for potential investors. One tip notes that Altair has a high price-to-book ratio, which stands at 11.16 as of the last twelve months ending Q2 2024. This could suggest that the market values Altair's intangible assets and growth potential highly. Another tip points out that analysts have recently revised their earnings expectations upwards for the company, which may explain the stock's strong performance and the timing of the trust's decision to sell.
For investors seeking a deeper understanding of Altair's valuation and prospects, InvestingPro offers 14 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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