Teresa A. Harris, a director at Altair Engineering Inc. (NASDAQ:ALTR), has sold a total of 620 shares of the company's Class A Common Stock on July 9, 2024, for an average price of $97.73 per share, resulting in a total transaction value of $60,592. This transaction was carried out in accordance with a prearranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.
The sale took place on the same day Harris exercised options to acquire 620 shares of the stock at no cost, as per the latest Form 4 filing with the Securities and Exchange Commission. Following the sale, Harris continues to hold a substantial number of shares in the company, including 2,347 Class A Common Stock restricted stock units that remain unvested.
Altair Engineering, headquartered in Troy, Michigan, operates in the prepackaged software industry and is known for its advanced engineering software and on-demand computing technologies. The company's shares are traded on the NASDAQ under the ticker symbol ALTR.
Investors often monitor the buying and selling activities of company insiders as they may provide insights into the company's financial health and future prospects. Transactions by insiders are regularly reported to the SEC and can be indicative of their confidence in the company's performance and growth potential.
The executed 10b5-1 plan, which was established on November 15, 2023, indicates that the sale by Harris was planned and not a spontaneous decision based on recent market activity or inside information. This could provide reassurance to investors that the transaction was part of a structured selling strategy rather than a response to any immediate concerns regarding the company's outlook.
As of now, Harris's remaining direct ownership in Altair Engineering Inc. stands at a significant number of shares, reflecting her continued stake in the company's success.
In other recent news, Altair Engineering Inc. has announced a series of significant developments. Altair has posted strong first quarter results for 2024, with total revenue reaching $172.9 million, a 6.9% increase from the previous year, and software revenue accounting for $158.4 million. The adjusted EBITDA for the same period was reported at $45.8 million.
In a strategic move, Altair has entered into a definitive agreement to acquire Metrics Design Automation Inc., a Canadian firm specializing in electronic design automation (EDA) simulation. This acquisition aims to integrate Metrics' digital simulator, DSim, with Altair's Silicon Debug Tools, offering an advanced simulation environment for EDA and semiconductor clients.
Altair has also announced a partnership with HP Inc (NYSE:HPQ). to enhance its Material Data Center, aiming to streamline the design and production processes for 3D-printed parts. In addition, Altair's inclusion in the S&P MidCap 400 Index reflects its consistent growth and established position in various fields. These recent developments highlight Altair's strategic focus on expansion and innovation.
InvestingPro Insights
As Altair Engineering Inc. (NASDAQ:ALTR) makes headlines with insider transactions, investors keep a keen eye on the company's financial metrics to gauge its performance and future growth potential. According to the latest data from InvestingPro, Altair's market capitalization stands at $8.01 billion, indicating a substantial presence in the prepackaged software industry.
The company's Price to Earnings (P/E) ratio, a key indicator of market expectations about growth and profitability, is notably high at 820.59, with an adjusted P/E based on the last twelve months as of Q1 2024 at 759.89. This suggests that investors are willing to pay a premium for Altair's earnings, potentially due to the company's innovative engineering software and on-demand computing technologies.
Altair's revenue growth also appears to be steady, with a 7.11% increase over the last twelve months as of Q1 2024, and a 4.14% growth in the most recent quarter. This consistent revenue growth can be a positive sign for investors looking for stability and gradual expansion in the company's operations.
One of the InvestingPro Tips highlights the importance of monitoring insider transactions alongside financial metrics to gain a comprehensive view of a company's health. With Teresa A. Harris's recent stock sale being preplanned, investors might consider this alongside Altair's strong gross profit margin of 80.64% and an impressive EBITDA growth of 259.85% over the last twelve months as of Q1 2024, as signs of a robust financial foundation.
For those looking to delve deeper into Altair's financials and insider activities, InvestingPro offers additional insights and tips. Currently, there are 15 more InvestingPro Tips available that could further inform investment decisions. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to a wealth of financial data and expert analysis.
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