In a recent transaction, Teresa A. Harris, a director at Altair Engineering Inc. (NASDAQ:ALTR), sold 620 shares of the company's Class A Common Stock at a price of $95.12 per share, totaling over $58,974. The sale was conducted under a pre-arranged trading plan in accordance with Rule 10b5-1, which allows insiders to sell shares at predetermined times and prices to avoid accusations of insider trading.
The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission, which provides transparency into the trading activities of corporate insiders. According to the filing, the shares were sold on October 1, 2024, and following the sale, Harris still owns a significant number of shares in the company, including unvested restricted stock units. The filing also noted that the shares sold were part of Harris's vested stock options that were exercisable since November 23, 2017, and are set to expire on November 23, 2026.
Altair Engineering Inc., headquartered in Troy, Michigan, specializes in prepackaged software services and has been a player in the technology sector. The sale by Harris is a routine transaction and offers investors a glimpse into the actions of the company's insiders. It is important for investors to monitor such transactions as they can provide insights into the confidence levels of company executives and directors in the firm's future prospects.
Investors and analysts often look at insider trading patterns for hints about the direction of the stock and the company's performance. However, it is also common for insiders to sell shares for personal financial planning reasons, unrelated to their outlook on the company's future.
The details of the transaction are publicly accessible through the SEC filing, allowing shareholders and potential investors to stay informed about significant insider trading activity.
In other recent news, Altair Engineering Inc. reported robust growth in its Q2 2024 earnings, with total revenue reaching $148.8 million, and software revenue hitting $135.4 million, marking a 10.6% year-over-year increase. Altair expects software revenue to continue outpacing other revenue streams, pushing gross margins higher. The 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.
Further, Altair recognized the continued support from Matrix Capital Management. This move by Matrix Capital underlines its belief in Altair's long-term strategic value. Altair has also expanded its reach with the acquisition of Metrics Design Automation.
Gartner (NYSE:IT) has acknowledged Altair's leadership in data science and machine learning. These recent developments suggest a strong trajectory for Altair Engineering Inc. in the competitive landscape of engineering software solutions.
InvestingPro Insights
To provide additional context to Teresa A. Harris's recent stock sale, let's examine some key financial metrics for Altair Engineering Inc. (NASDAQ:ALTR). As of the latest data from InvestingPro, Altair boasts a market capitalization of $7.79 billion, reflecting its significant presence in the prepackaged software services sector.
The company's revenue for the last twelve months as of Q2 2024 stands at $627.21 million, with a revenue growth of 6.85% over the same period. This steady growth trajectory aligns with Altair's position as a key player in the technology sector, as mentioned in the article.
Notably, Altair maintains a high gross profit margin of 80.92% for the last twelve months as of Q2 2024, indicating strong pricing power and efficient cost management in its core operations. This robust margin could be a factor in the company's attractiveness to both insiders and external investors.
An InvestingPro Tip highlights that Altair's stock price has shown resilience, currently trading at 90.52% of its 52-week high. This performance suggests that despite the insider sale, the market maintains a generally positive outlook on the company's prospects.
Another InvestingPro Tip points out that analysts have revised their earnings upwards for the upcoming fiscal year. This upward revision could potentially explain why Harris still retains a significant number of shares despite the recent sale, as mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Altair Engineering Inc., providing a deeper dive into the company's financial health and market position.
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