Altair Engineering Inc. (NASDAQ:ALTR) has reported that its Chief Executive Officer, James Ralph Scapa, has sold a significant amount of company stock, according to the latest SEC filings. The transactions, which took place on March 18, 2024, involved the sale of a total of 5,000 shares at prices that ranged from $79.8677 to $80.8396, resulting in an aggregate sale amount of over $807,424.
The sales were executed in multiple transactions, with prices for some of the shares sold ranging between $79.295 and $80.21, and for others between $80.33 and $81.23. The weighted average prices reported for these sales were $79.8677 and $80.8396, respectively. The transactions are part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own.
In addition to the sales, the SEC filing also indicated that Scapa acquired 10,000 shares of Altair Engineering's Class A Common Stock at no cost on the same date. These shares are held indirectly through two different entities. The first 5,000 shares are held by the James R. Scapa Declaration of Trust dated March 5, 1987, for which Scapa serves as Trustee, and the second set of 5,000 shares are held by JRS Investments LLC, with Scapa serving as Manager.
It should be noted that Scapa disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein. The inclusion of these shares in the report shall not be deemed an admission of beneficial ownership for all of the reported shares for purposes of Section 16 or for any other purpose.
Following the reported transactions, Scapa's direct holdings in Class A Common Stock have been adjusted to 139,605 shares, which includes 95,042 restricted stock units that remain unvested. Additionally, an indirect holding of 1,202 shares is reported, held by Scapa's wife, which includes 20 unvested restricted stock units.
Investors often monitor insider buying and selling as it can provide insights into a company's internal perspective. The transactions by Altair Engineering's CEO will likely be of interest to current and potential shareholders as they assess their investment in the company.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has made headlines with insider stock transactions, and a closer look at the company's financial health through InvestingPro data may offer investors additional insights. The company boasts a substantial market capitalization of $6.65 billion, reflecting its significant presence in the industry. Despite a challenging P/E ratio of -729.91, which has further adjusted to -1234.21 for the last twelve months as of Q4 2023, Altair's financials show some positive aspects. Notably, the company has achieved a revenue growth of 7.07% over the last twelve months, indicating a steady increase in its business operations.
The gross profit margin stands at an impressive 80.12%, which suggests that Altair Engineering is effectively managing its production costs relative to its revenues. Additionally, the company has experienced a remarkable EBITDA growth of 110.48% during the same period. This substantial improvement in earnings before interest, taxes, depreciation, and amortization could signal operational efficiency and potential for reinvestment in the company's growth.
Investors considering the stock's performance will note that Altair's price is at 86.4% of its 52-week high, and the 1 Year Price Total Return is at 15.39%, reflecting a positive trend over the past year. PRONEWS24 is a coupon code that can be used to access more InvestingPro Tips, which currently lists an additional 15 tips that could further guide investment decisions regarding Altair Engineering Inc.
InvestingPro also provides a fair value estimate for Altair, with analyst targets suggesting a fair value of $90, while InvestingPro's own fair value calculation is at $63.31. This discrepancy may be of interest to investors as they evaluate the stock's current price and future potential. The next earnings date is set for May 2, 2024, which will be an important event for shareholders to gain further insights into the company's performance and strategic direction.
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