On October 15, a recent SEC filing unveiled that George J Christ, 10% Owner at Altair Engineering ALTR made an insider sell.

What Happened: Christ’s recent move involves selling 100,000 shares of Altair Engineering. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $9,523,390.

During Wednesday’s morning session, Altair Engineering shares down by 0.23%, currently priced at $94.0.

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.

Altair Engineering: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Altair Engineering showcased positive performance, achieving a revenue growth rate of 5.41% as of 30 June, 2024. This reflects 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.

Evaluating Earnings Performance:

• 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: With a below-average debt-to-equity ratio of 0.33, Altair Engineering adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 294.44, 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 12.66 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): A high EV/EBITDA ratio of 94.58 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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.