On September 30, a recent SEC filing unveiled that Christ Revocable Trust, 10% Owner at Altair Engineering ALTR made an insider sell.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Trust executed a sale of 50,048 shares of Altair Engineering with a total value of $4,758,223.

At Tuesday morning, Altair Engineering shares are down by 0.0%, trading at $95.51.

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.

Financial Milestones: Altair Engineering’s Journey

Revenue Growth: Altair Engineering’s remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.41%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 79.49%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Altair Engineering’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.06.

Debt Management: Altair Engineering’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.33.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Altair Engineering’s current Price to Earnings (P/E) ratio of 298.47 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 12.83 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Altair Engineering’s EV/EBITDA ratio stands at 95.92, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

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.

Navigating the World of Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Altair Engineering’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.