Assessing Altair Engineering: Insights From 4 Financial Analysts

4 analysts have expressed a variety of opinions on Altair Engineering ALTR over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $92.0, a high estimate of $100.00, and a low estimate of $88.00. Marking an increase of 8.88%, the current average surpasses the previous average price target of $84.50.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Altair Engineering is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Altair Engineering. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Altair Engineering compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Altair Engineering's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Altair Engineering's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Get to Know Altair Engineering Better

Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.

Altair Engineering's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Altair Engineering's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.9% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Altair Engineering's net margin is impressive, surpassing industry averages. With a net margin of 11.47%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Altair Engineering's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.92%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Altair Engineering's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.5% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 0.48, Altair Engineering faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.