Massive Insider Trade At Altair Engineering

George J Christ, 10% Owner at Altair Engineering ALTR, executed a substantial insider sell on June 28, according to an SEC filing.

What Happened: After conducting a thorough analysis, Christ sold 100,000 shares of Altair Engineering. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total transaction value is $9,839,631.

Altair Engineering's shares are actively trading at $98.59, experiencing a up of 0.74% during Friday's morning session.

All You Need to Know About Altair Engineering

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

Revenue Growth: Altair Engineering displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 4.14%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 82.13%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Altair Engineering's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.2.

Debt Management: Altair Engineering's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.44.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 889.73 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 13.11, 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): Boasting an EV/EBITDA ratio of 107.12, Altair Engineering demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Activity Matters in Finance

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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.