In a recent transaction, JRS Investments LLC, a significant shareholder in Altair Engineering Inc. (NASDAQ:ALTR), has sold a portion of its holdings in the company. The investment firm disposed of 5,000 shares of Class A Common Stock at weighted average prices ranging from $79.8677 to $80.8396, totaling approximately $403,712.
The sales occurred on March 18, 2024, and were conducted in multiple transactions with prices varying between $79.295 to $81.23 per share. This information comes from a footnote in the SEC filing, which also states that the sales were made pursuant to a plan that complies with Rule 10b5-1 of the Exchange Act, established on December 14, 2022.
JRS Investments LLC is a ten percent owner of Altair Engineering, as indicated in the SEC filing. The company, based in Troy, Michigan, is known for its services in the prepackaged software industry.
The transactions are part of routine trading activities by shareholders and do not necessarily indicate a change in the company's fundamentals or outlook. Following the sale, JRS Investments LLC's direct holdings in Class A Common Stock have been reduced to zero, according to the filing.
Investors often monitor the buying and selling activities of significant shareholders as it can provide insights into their perspective on the company's value and prospects. However, it's important to consider that such transactions can be influenced by a variety of factors, including personal financial planning and portfolio management strategies.
Altair Engineering Inc. and JRS Investments LLC have not publicly commented on the specifics of the transactions.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has recently seen significant trading activity from major shareholders, reflecting investor maneuvers in the company's stock. To provide additional context to these transactions, key financial metrics and analyst insights from InvestingPro are worth considering.
The company's market capitalization, after adjustments, stands at $6.65 billion, indicating its size and presence in the market. Despite a challenging valuation picture with a negative P/E ratio of -729.91, and an even steeper adjusted P/E ratio for the last twelve months as of Q4 2023 at -1234.21, investors may look at other aspects of the company's financial health. The revenue growth for Altair Engineering has been modest, with a 7.07% increase over the last twelve months as of Q4 2023 and a quarterly uptick of 6.9% in Q4 2023. This demonstrates a consistent trajectory in the company's ability to increase its sales.
One of the InvestingPro Tips suggests paying close attention to the company's gross profit margin, which is a robust 80.12% for the same period, indicating that Altair Engineering is effective at controlling its cost of goods sold and maintaining profitability on its products and services. Additionally, the EBITDA growth of 110.48% in the last twelve months as of Q4 2023 is a strong sign that the company's earnings before interest, taxes, depreciation, and amortization are on a significant upward trend.
Another InvestingPro Tip highlights the importance of considering the company's price relative to its 52-week high, which currently stands at 86.4%. This could suggest that the stock is potentially undervalued, given that the fair value estimated by analysts is $90, while InvestingPro's own fair value assessment is at $63.31.
For investors seeking a deeper dive into Altair Engineering's financials and strategic shareholder activities, InvestingPro offers additional insights and tips. With the use of coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of data-driven investment strategies. Currently, there are 15 more tips available on InvestingPro that could further inform investment decisions regarding Altair Engineering Inc.
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