Sell Alert: Christ Revocable Trust Cashes Out $7.42M In Altair Engineering Stock

Christ Revocable Trust, 10% Owner at Altair Engineering ALTR, reported an insider sell on May 9, according to a new SEC filing.

What Happened: Trust's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 87,217 shares of Altair Engineering. The total transaction value is $7,423,855.

Monitoring the market, Altair Engineering's shares up by 0.25% at $85.89 during Friday's morning.

Discovering Altair Engineering: A Closer Look

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 Economic Impact: An Analysis

Positive Revenue Trend: Examining Altair Engineering's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.14% as of 31 March, 2024, 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.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 82.13%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Altair Engineering's EPS is below the industry average. The company faced challenges with a current EPS of 0.2. This suggests a potential decline in earnings.

Debt Management: Altair Engineering's debt-to-equity ratio is below the industry average. With a ratio of 0.44, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Altair Engineering's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 778.82.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 11.48, Altair Engineering's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 93.39 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Altair Engineering's Insider Trades.

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