Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on May 20, GC Investments LLC, 10% Owner at Altair Engineering (NASDAQ:ALTR), executed a substantial insider sell as per the latest SEC filing.
What Happened: LLC's recent move involves selling 50,000 shares of Altair Engineering. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $4,517,985.
In the Monday's morning session, Altair Engineering's shares are currently trading at $91.52, experiencing a up of 1.13%.
Discovering Altair Engineering: A Closer Look Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.
Unraveling the Financial Story of Altair Engineering Positive Revenue Trend: Examining Altair Engineering's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.14% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Evaluating Earnings Performance:
- Gross Margin: The company maintains a high gross margin of 82.13%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Altair Engineering's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.2.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: Altair Engineering's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 822.73.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 12.12 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Altair Engineering's EV/EBITDA ratio of 98.83 exceeds industry averages, indicating a premium valuation in the market
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Insider Activity Matters in Finance Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Breaking Down the Significance of Transaction Codes Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Altair Engineering's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.