Insider Unloading: Christ Revocable Trust Sells $9.84M Worth Of Altair Engineering Shares

Making a noteworthy insider sell on June 28, Christ Revocable Trust, 10% Owner at Altair Engineering ALTR, is reported in the latest SEC filing.

What Happened: Trust's recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday unveiled the sale of 100,000 shares of Altair Engineering. 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.

Key Indicators: Altair Engineering's Financial Health

Revenue Growth: Altair Engineering's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 4.14%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 82.13%, the company performs well in terms of cost management and profitability within its sector.

• 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.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 889.73 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 13.11 is above industry norms, reflecting an elevated valuation for Altair Engineering's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Altair Engineering's EV/EBITDA ratio stands at 107.12, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Navigating the World of Insider 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.