An insider of Altair Engineering Inc. (NASDAQ:ALTR), a leading provider of software solutions for product design and development, has recently sold a significant amount of company stock. GC Investments LLC, a major shareholder, executed multiple sales transactions totaling over $4.5 million.
The sales took place on May 20 and May 21, with prices per share ranging from $90.8614 to $92.1967. On May 20, two separate transactions were reported. The first involved the sale of 33,046 shares at an average price of $91.4905, and the second comprised 15,658 shares sold at a weighted average price of $92.1967. The following day, an additional 1,296 shares were sold at an average price of $90.8614.
These transactions resulted in a total sale value of approximately $4,584,767 for the shares disposed of by GC Investments LLC. The sales were executed at varying prices, with the company providing the assurance that detailed information regarding the number of shares sold at each separate price within the reported ranges would be made available upon request.
Following the sales, GC Investments LLC's ownership in Altair Engineering Inc. stands at 200,000 shares. The transactions were signed off by Raoul Maitra, attorney-in-fact for GC Investments, LLC, indicating a direct ownership nature of the shares sold.
Investors often monitor insider transactions as they provide insights into how the company's leadership views the stock's value and future prospects. The sale of Altair Engineering shares by GC Investments LLC is a notable event for current and potential shareholders, reflecting significant insider trading activity within the company.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has been the subject of market attention following insider sales by GC Investments LLC. The current market data reflects a complex picture of the company's financial health and investor sentiment. With a market capitalization of $7.57 billion and a notably high P/E ratio of 772.88, which adjusts slightly lower to 717.74 when looking at the last twelve months as of Q1 2024, Altair appears to be valued optimistically by the market.
The company has demonstrated a steady revenue growth of 7.11% over the last twelve months leading up to Q1 2024, with a more modest quarterly growth rate of 4.14% in Q1 2024. This growth is coupled with a robust gross profit margin of 80.64%, indicating that Altair maintains a strong ability to retain earnings relative to its revenue. However, the operating income margin sits at a lower 2.39%, suggesting that operational costs are a significant factor for the company.
Investors tracking the stock performance will note that Altair has seen a 1-month price total return of 10.36%, and a more impressive 6-month return of 26.48%, showcasing a positive trend in investor returns. Yet, the stock is trading close to its 52-week high at 98.1% of that value, based on the previous closing price of $90.74. This proximity to the high could indicate a potential plateau or reevaluation phase for the stock price, which is critical for investors to consider.
InvestingPro Tips suggest that while the company's revenue growth and gross profit margin are strong, the high P/E ratio could signal an overvaluation, which warrants caution for investors. Moreover, Altair's EBITDA growth over the last twelve months leading up to Q1 2024 has been substantial at 259.85%, reflecting significant improvements in profitability and operational efficiency.
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