In a recent transaction, an insider of Altair Engineering Inc. (NASDAQ:ALTR), the Christ Revocable Trust, has sold a significant number of shares in the company. The transaction involved the sale of 50,048 shares of Class A Common Stock at an average price of $95.0732 per share, totaling approximately $4.75 million.
The shares were sold on September 27, 2024, and the prices ranged from $94.95 to $95.9375 per share. The trust, which is a ten percent owner of the company, has disclosed this information in compliance with the Securities and Exchange Commission's requirements. Following the sale, the Christ Revocable Trust continues to hold 149,952 shares of Altair Engineering Inc.
Altair Engineering Inc. is known for its services in prepackaged software and has established a significant presence in the tech industry. The company, incorporated in Delaware, has its business address in Troy, Michigan.
Investors and market watchers often look to insider transactions as an indicator of a company's health and future performance, though such sales can be motivated by a variety of personal financial considerations. The detailed information regarding the number of shares sold at each separate price within the stated range is available upon request from the reporting person.
The sale was signed off by Raoul Maitra, attorney-in-fact for the Christ Revocable Trust, demonstrating the legal formalities followed in the process of this transaction. The trust's remaining stake in the company is still substantial, indicating a continued vested interest in Altair Engineering's success.
Investors will be watching how this sale might affect Altair Engineering's stock performance and what it may signal about the company's trajectory in the near future.
In other recent news, Altair Engineering Inc. reported significant growth in its Q2 2024 earnings, with total revenue reaching $148.8 million and software revenue hitting $135.4 million. This marks a 10.6% year-over-year increase in software revenue, now comprising 91% of the company's total revenue. This growth was largely driven by strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024.
Altair has also acknowledged the ongoing support from Matrix Capital Management, emphasizing Matrix Capital's continued investment as a testament to the company's long-term strategic value. In addition, Gartner (NYSE:IT) recognized Altair's leadership in data science and machine learning, and the company expanded its reach with the acquisition of Metrics Design Automation.
Altair's full-year 2024 guidance includes software revenue of $590 million to $600 million and total revenue of $648 million to $658 million. Adjusted EBITDA for 2024 is projected to be between $136 million and $144 million. These recent developments point to a positive trajectory for Altair Engineering Inc. in the competitive landscape of engineering software solutions.
InvestingPro Insights
To provide additional context to the recent insider sale at Altair Engineering Inc. (NASDAQ:ALTR), let's examine some key financial metrics and insights from InvestingPro.
Altair Engineering boasts a market capitalization of $8.09 billion, reflecting its significant presence in the prepackaged software industry. The company's revenue for the last twelve months as of Q2 2024 stood at $627.21 million, with a modest growth rate of 6.85% over the same period. This growth, while positive, may be a factor in the insider's decision to sell a portion of their holdings.
One of the standout metrics is Altair's impressive gross profit margin of 80.92% for the last twelve months as of Q2 2024. This high margin suggests that the company has strong pricing power and efficient cost management in its core operations, which could be attractive to potential investors.
InvestingPro Tips highlight two important aspects of Altair's financial performance:
1. The company has demonstrated strong revenue growth, with a 5.41% increase in the most recent quarter compared to the same quarter last year.
2. Altair's stock has outperformed the market, with a 51.65% return over the past year.
These tips, along with 11 additional insights available on InvestingPro, provide a more comprehensive view of Altair's financial health and market position.
It's worth noting that while the insider sale was substantial, the Christ Revocable Trust still maintains a significant stake in the company. This, coupled with Altair's solid financial metrics, suggests that the sale may not necessarily indicate a lack of confidence in the company's future prospects.
The current stock price of $94.87 is close to the fair value of $95 based on analyst targets, indicating that the market's valuation aligns closely with expert opinions. Investors considering Altair may want to weigh these factors alongside the insider transaction when making investment decisions.
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