In a recent transaction, the James R. Scapa Declaration of Trust reported a significant sale of Altair Engineering Inc. (NASDAQ:ALTR) shares. The trust sold a total of 6,500 shares of Class A common stock, valued at approximately $666,847. The shares were sold at a weighted average price range between $102.08 and $103.84 per share.
This transaction was made under a pre-established trading plan compliant with Rule 10b5-1, which was entered into on March 11, 2024. Following this sale, the trust no longer holds any shares of Class A common stock directly.
Additionally, a conversion of Class B common stock to Class A common stock was reported, involving 6,500 shares. However, this conversion did not involve any cash transaction.
In other recent news, Altair Engineering Inc. has reported robust growth in its Q2 2024 earnings. Total revenue reached $148.8 million, with software revenue hitting $135.4 million, marking a 10.6% year-over-year increase. This growth was largely attributed to strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024.
In addition, Altair expanded its reach with the acquisition of Metrics Design Automation, contributing to its simulation-as-a-service offerings. The company, in collaboration with the Technical University of Munich, made a breakthrough in quantum computing, particularly in computational fluid dynamics (CFD). This advancement could significantly increase the model size and scalability of CFD simulations compared to classical computing methods.
Oppenheimer maintained its positive stance on Altair, reiterating an Outperform rating amid reports that Altair is considering expressions of takeover interest. Meanwhile, Matrix Capital Management decided to maintain its full investment position in Altair. Gartner (NYSE:IT) analysts recognized Altair's leadership in data science and machine learning, reinforcing the company's position in the computational intelligence landscape.
InvestingPro Insights
As Altair Engineering Inc. (NASDAQ:ALTR) experiences insider selling activity, it's crucial to consider the company's current financial position and market performance. According to InvestingPro data, Altair boasts a market capitalization of $9.28 billion, reflecting its substantial presence in the engineering software industry.
The company's revenue for the last twelve months as of Q2 2024 stands at $627.21 million, with a notable revenue growth of 6.85% over the same period. This growth trajectory aligns with the recent stock performance, as Altair has seen a impressive 71.46% price total return over the past year.
InvestingPro Tips highlight that Altair's stock price has outperformed the S&P 500 in the past year, which may explain the trust's decision to sell shares at the current price levels. Additionally, analysts have revised their earnings upwards for the upcoming fiscal year, suggesting positive expectations for the company's future performance.
It's worth noting that Altair's P/E ratio (adjusted) of 344.11 indicates a premium valuation compared to many peers. This high multiple could be attributed to the company's strong growth prospects and market position. Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 14 more tips for Altair Engineering Inc.
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