Jeffrey Marraccini, an executive at Altair Engineering Inc. (NASDAQ:ALTR), has sold a total of 12,043 shares of Class A Common Stock, according to recent SEC filings. The transactions, which took place on May 13 and 14, 2024, involved sales at prices ranging from $85.50 to $86.075, with a weighted average price of $85.7364 per share, amounting to a total sale value of $1,028,836.
The first sale reported on May 13 involved 43 shares at a price of $85.77 per share, totaling $3,688. The following day, Marraccini sold an additional 12,000 shares. This larger transaction was part of a series of trades at varying prices within the specified range, indicating a possible strategy to manage the impact on the stock's market price.
In conjunction with these sales, Marraccini also exercised options to acquire the same number of shares, 12,000, at no cost on May 14. These options, which were fully vested and had a conversion or exercise price of $52.03, are set to expire on December 2, 2030. However, the executive chose to exercise these options and immediately sold the acquired shares, a common practice among executives to manage their stock-based compensation.
Following these transactions, Marraccini's holdings in Altair Engineering have decreased, yet he still owns a significant number of shares, including 2,825 Class A Common Stock restricted stock units that are unvested.
The sales were partly conducted to satisfy tax withholding obligations related to the vesting of restricted stock units, as noted in the footnotes of the filing. This is a routine procedure where a portion of vested shares is sold to cover the taxes due, ensuring that the executive retains the remainder of the vested shares.
Altair Engineering Inc., headquartered in Troy, Michigan, specializes in services and software related to prepackaged software, a sector that has seen significant growth and transformation in recent years.
Investors and market watchers often keep a close eye on insider transactions, such as those by Marraccini, as they can provide valuable insights into executive confidence and company performance. However, such transactions are also a regular part of executive compensation and financial planning strategies and do not necessarily indicate a change in the company's outlook or operations.
InvestingPro Insights
As Altair Engineering Inc. (NASDAQ:ALTR) navigates the dynamic landscape of the prepackaged software industry, key financial metrics provide a deeper understanding of the company's current valuation and performance. With a significant market capitalization of $7.47 billion, Altair stands as a substantial player in its sector.
Investors analyzing Altair's valuation metrics would note the company's high P/E ratio, which stands at 762.54 on a trailing basis and adjusts slightly to 708.99 for the last twelve months as of Q1 2024. This indicates a premium valuation, which may reflect investor expectations of future growth or the company's unique market position. Additionally, Altair's revenue growth remains steady, with a 7.11% increase over the last twelve months as of Q1 2024, and a more modest quarterly growth of 4.14% in Q1 2024.
The InvestingPro Tips suggest that while the P/E ratio is high, the PEG ratio of 6.68 for the same period indicates that the company's earnings growth rate is factored into its valuation, which could be a point of analysis for potential investors. Moreover, with a solid gross profit margin of 80.64%, Altair demonstrates its ability to maintain profitability in its operations. For those interested in exploring further, there are 12 additional InvestingPro Tips available, offering more nuanced guidance on Altair's financial health and investment potential.
Altair's stock performance also presents a mixed picture. The 1 Year Price Total Return as of Y2024.D136 is an impressive 27.42%, showcasing a strong annual performance. On the other hand, the 3 Month Price Total Return reflects a slight decline of -5.38%, highlighting the stock's volatility in the shorter term. Investors considering Altair as part of their portfolio might weigh these figures against the company's strong fundamentals and future prospects.
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