Altair Engineering Recent Insider Activity

It was reported on October 10, that Christ Revocable Trust, 10% Owner at Altair Engineering ALTR executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Trust sold 49,952 shares of Altair Engineering. The total transaction amounted to $4,781,645.

The latest market snapshot at Thursday morning reveals Altair Engineering shares down by 1.55%, trading at $93.64.

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 Financial Performance

Revenue Growth: Over the 3 months period, Altair Engineering showcased positive performance, achieving a revenue growth rate of 5.41% as of 30 June, 2024. This reflects a substantial increase in the company's 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.

Evaluating Earnings Performance:

• Gross Margin: With a high gross margin of 79.49%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Altair Engineering's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.06.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

Understanding Financial Valuation:

• 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 297.09.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 12.77 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Altair Engineering's EV/EBITDA ratio, surpassing industry averages at 95.46, positions it with an above-average valuation in the market.

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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Why Insider Transactions Are Key in Investment Decisions

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

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.

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