In a recent transaction, a significant insider of Altair Engineering Inc. (NASDAQ:ALTR), the Christ Revocable Trust, reported selling a substantial amount of company stock, totaling over $1 million. The trust, which is a ten percent owner of the prepackaged software services company, completed the sale on April 9, 2024.
The transaction involved the sale of 12,145 shares at a weighted average price of $85.8086, with individual prices ranging from $85.42 to $86.38. Additionally, 638 shares were sold at an average price of $86.573, with the prices ranging from $86.495 to $86.6275. The total value of the shares sold by the Christ Revocable Trust amounted to approximately $1,097,379.
Following the sale, the trust still retains a significant stake in Altair Engineering Inc., with 187,217 shares remaining in its possession. The sale was executed in multiple transactions, indicating a systematic selling strategy rather than a one-off event.
Investors often monitor insider transactions as they can provide insights into the company's performance and insiders' perspectives on the stock's value. However, it is important to note that there can be many reasons for insiders to sell their shares, and such transactions do not necessarily signal a lack of confidence in the company.
The reporting person has pledged to provide full details of the shares sold at each separate price within the stated ranges upon request to Altair Engineering Inc., its security holders, or the Securities and Exchange Commission staff.
Altair Engineering Inc. has not made any public comments regarding the transactions reported by the Christ Revocable Trust. The stock market and investors will likely continue to watch for any potential impact of these insider transactions on the company's stock performance.
InvestingPro Insights
As Altair Engineering Inc. (NASDAQ:ALTR) experiences insider selling activity, it's essential for investors to consider the company's financial health and market performance for a broader perspective. The recent data from InvestingPro reveals some key metrics that may interest shareholders and potential investors.
With a market capitalization of $6.95 billion, Altair Engineering Inc. stands as a significant player in the prepackaged software services industry. Despite a challenging P/E ratio, which currently stands at an adjusted -754.05 for the last twelve months as of Q4 2023, the company has managed to achieve a revenue growth of 7.07% during the same period. This growth is consistent with the quarterly increase of 6.9% in Q4 2023, suggesting a steady upward trend in sales.
The gross profit margin is notably high at 80.12%, indicating effective cost management relative to revenue. Furthermore, with an EBITDA growth of 110.48% in the last twelve months as of Q4 2023, Altair Engineering Inc. has demonstrated significant improvement in its earnings before interest, taxes, depreciation, and amortization, which is a positive sign for operational efficiency and profitability potential.
From a stock performance perspective, the price of Altair Engineering Inc. is at 92.48% of its 52-week high, and the company has seen a 1-year price total return of 21.66%. This reflects a robust medium-term performance that could be attractive to investors looking for growth stocks.
InvestingPro Tips highlight that a close analysis of insider transactions, alongside these financial metrics, can offer a more comprehensive understanding of the company's situation. The recent insider selling might raise questions, but the financial data suggests underlying strengths in the company's fundamentals. For those seeking additional insights, InvestingPro offers more tips on evaluating insider transactions and market data. There are currently 15 additional tips listed in InvestingPro that could provide further guidance on Altair Engineering Inc.
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