Revealing a significant insider sell on October 10, Christ Revocable Trust, 10% Owner at Altair Engineering ALTR, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Trust sold 49,952 shares of Altair Engineering. The total transaction amounted to $4,781,645.

In the Friday’s morning session, Altair Engineering‘s shares are currently trading at $96.0, experiencing a up of 1.06%.

All You Need to Know About Altair Engineering

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.

Altair Engineering’s Economic Impact: An Analysis

Positive Revenue Trend: Examining Altair Engineering’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.41% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 79.49%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Altair Engineering’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.06.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 296.97, Altair Engineering’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 12.76 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): At 95.42, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Illuminating the Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.