In a recent move at Altair Engineering Inc. (NASDAQ:ALTR), director Teresa A. Harris sold 620 shares of the company's Class A common stock, resulting in a total transaction value exceeding $55,000. The shares were sold at a price of $89.70 each, according to the latest filings.
The transaction, which took place on September 3, 2024, was executed under a plan that complies with Rule 10b5-1 of the Exchange Act. This rule allows company insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading. It should be noted that the plan was established well in advance of the actual transaction, on November 15, 2023.
In addition to the sale, Harris also reported an acquisition of the same number of shares through the exercise of stock options. These options, which were fully vested as indicated by the accompanying footnotes in the filing, had an exercise price of $4.52 per share. However, the acquisition did not result in any net increase in ownership, as the shares acquired were immediately sold.
Following these transactions, Harris's ownership in the company includes 21,862 shares of Class A common stock, which accounts for both direct holdings and 2,347 restricted stock units that are yet to vest.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. While the sale of shares by a director might raise questions, it is important to consider the context provided by the 10b5-1 plan, which indicates that the sale was pre-planned and not necessarily a response to recent developments within the company or its market performance.
Altair Engineering Inc., headquartered in Troy, Michigan, specializes in services related to prepackaged software and is known for its technological contributions across various industries.
In other recent news, Altair Engineering Inc. has reported robust growth in Q2 2024, with total revenue reaching $148.8 million and software revenue hitting $135.4 million, a 10.6% year-over-year increase. This growth was significantly driven by strong performance in the aerospace and defense sector and the launch of advanced AI capabilities in Altair HyperWorks 2024. The company's leadership in data science and machine learning was also recognized by Gartner (NYSE:IT), and its reach was expanded through the acquisition of Metrics Design Automation. Altair's full-year 2024 guidance includes software revenue of $590 million to $600 million and total revenue of $648 million to $658 million. Adjusted EBITDA for 2024 is projected to be between $136 million and $144 million. In addition, Altair acknowledged Matrix Capital Management's continued investment, signaling confidence in the company's long-term strategic value. These recent developments suggest a strong trajectory for Altair Engineering Inc. in the competitive landscape of engineering software solutions.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has been navigating the market with a substantial market capitalization of $7.41 billion, reflecting its significant presence in the prepackaged software industry. The company's financial metrics provide a comprehensive view of its performance and valuation. With a P/E ratio that stands at a high 268.31, investors may scrutinize the company's earnings relative to its stock price, which is further emphasized by an adjusted P/E ratio of 291.4 for the last twelve months as of Q2 2024. This suggests a premium valuation compared to the market average, possibly due to expectations of future growth or the company's strong market position.
InvestingPro Tips indicate that Altair Engineering's PEG ratio, which measures the relationship between the price/earnings ratio and earnings growth rate, is at 1.82 for the same period. This figure may suggest that the company's stock price is high relative to its earnings growth, a factor that investors should consider when evaluating the potential for future stock performance. The Price / Book ratio of 9.36 also highlights that investors are willing to pay a higher price for each dollar of book value, which could be due to the company's robust gross profit margin of 80.92%.
Revenue growth remains a critical indicator of a company's success and potential. Altair's revenue has grown by 6.85% over the last twelve months as of Q2 2024, with a quarterly growth rate of 5.41%. This steady increase in revenue, coupled with a gross profit of $507.55 million, showcases the company's ability to generate income efficiently from its sales.
For investors looking for more comprehensive insights, InvestingPro offers an array of additional tips; there are 15 more InvestingPro Tips available that can help investors make more informed decisions regarding their interest in Altair Engineering Inc.
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