Altair Engineering Inc. (NASDAQ:ALTR) director Teresa A. Harris has sold shares of the company's stock, according to recent filings with the Securities and Exchange Commission. On June 4, 2024, Harris completed the sale of 620 shares at an average price of $85.95 per share, totaling approximately $53,289 in transaction value.
The transaction was executed under a prearranged 10b5-1 trading plan, which allows company insiders to establish predetermined trading arrangements for selling stocks at a future date. This plan is designed to prevent any improper use of material non-public information during the stock's sale.
In addition to the stock sale, Harris also reported exercising options for the same number of shares, 620, of Class A Common Stock. These options, fully vested, had a conversion or exercise price of $4.52 per share, as indicated in the SEC filing footnotes. The exercised options are part of a compensation package and typically allow the holder to buy shares at a set price after certain conditions are met, such as staying with the company for a specific period.
Following the reported transactions, Harris's ownership in Altair Engineering includes 21,862 shares of Class A Common Stock, which accounts for the 2,347 restricted stock units that are unvested.
The sale and option exercise were publicly disclosed as required by SEC regulations, providing transparency into the actions of the company's executives. Investors often monitor such filings to gain insight into the behavior of company insiders, which can be an indicator of the company's financial health and management's confidence in the firm's prospects.
Altair Engineering, headquartered in Troy, Michigan, specializes in services related to prepackaged software, offering solutions that drive innovation and decision-making through technology and analytics.
In other recent news, Altair Engineering Inc. has reported strong financial results for the first quarter of 2024, exceeding its own expectations. The company's total revenue reached $172.9 million, with software revenue at $158.4 million, indicating a 6.9% year-over-year increase on a constant currency basis. Altair's adjusted EBITDA for the quarter was $45.8 million, and the firm concluded the quarter with a cash reserve of $557.6 million.
In addition to its financial achievements, Altair has been making strategic acquisitions to bolster its data analytics and AI capabilities. The company's anticipated launch of Altair SimSolid for electronics also signals a continued focus on expansion and innovation. Altair has been recognized for its efforts, winning the 2024 Google (NASDAQ:GOOGL) Cloud North America Partner of the Year Award for Diversity, Equity, and Inclusion.
While the company's Q1 results exceeded expectations, Altair acknowledged a slight underperformance in Q2 due to external factors such as currency impact and seasonality. However, the company remains optimistic about future growth and market opportunities, projecting strong software revenue growth and adjusted EBITDA for Q2 and the full year of 2024. These recent developments underscore Altair's commitment to strategic growth and financial stability.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has recently been the subject of attention due to insider transactions by director Teresa A. Harris. For investors following ALTR, InvestingPro provides key metrics that may offer a deeper understanding of the company's current financial standing. As of the first quarter of 2024, Altair Engineering boasts a robust Gross Profit Margin of 80.64%, reflecting its strong ability to control costs relative to revenue. Additionally, the company's Revenue Growth over the last twelve months stands at 7.11%, indicating a steady upward trajectory in its earnings.
InvestingPro Tips suggest that while Altair's Price to Earnings (P/E) Ratio is currently high at 703.56, indicating a premium market valuation, the company's significant EBITDA Growth of 259.85% over the same period showcases potential for future profitability that may justify this valuation. Moreover, with the stock's Price hovering at 95.21% of its 52-week high, it suggests that investor sentiment has remained positive. For those considering an investment, the InvestingPro Fair Value is estimated at 70.33 USD, which may provide a benchmark for potential price adjustments.
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