Altair Engineering Inc. (NASDAQ:ALTR) CEO James Ralph Scapa has recently made significant changes to his holdings in the company, according to the latest SEC filings. On June 28, 2024, Scapa sold a total of 9,338 shares of Class A Common Stock at weighted average prices ranging from $97.7684 to $99.5661, netting a total of over $1.27 million.
The transactions were executed under a pre-arranged trading plan that complies with Rule 10b5-1 of the Exchange Act, which allows insiders to establish predetermined trading plans when they are not in possession of material non-public information. The sales took place in multiple transactions at varying prices. Specifically, shares were sold in ranges: some at prices from $97.30 to $98.29, others from $98.30 to $99.26, and the last batch from $99.37 to $99.75.
In addition to the sales, Scapa also acquired 13,000 shares of the same stock class at no cost. These transactions are part of the company's equity compensation structure and are usually predetermined by the terms of the executive's employment or options agreement.
The SEC filing also noted that the shares are held indirectly by Scapa through the James R. Scapa Declaration of Trust and JRS Investments LLC, for which he serves as Trustee and Manager, respectively. The reporting footnotes clarify that Scapa disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein.
Following these transactions, the total number of shares directly owned by Scapa is indicated as 134,045, which includes 88,194 Class A Common Stock restricted stock units that are unvested. Additionally, his indirect holdings through entities like the trust and JRS Investments LLC have been adjusted accordingly.
Investors often monitor insider buying and selling as it can provide insights into an executive's view of the company's future performance. However, it's important to note that these transactions do not necessarily indicate a lack of confidence in the company; they might be part of standard financial planning or diversification strategies.
Altair Engineering, headquartered in Troy, Michigan, specializes in services and software related to engineering, computing, and analytics. The company remains a leader in its field, providing solutions to a wide array of industries worldwide.
In other recent news, Altair has been making significant strides, both financially and strategically. The company reported a strong first quarter in 2024, with total revenue reaching $172.9 million, of which $158.4 million was software revenue, marking a 6.9% increase from the previous year. Adjusted EBITDA for the same period was reported at $45.8 million.
Altair has announced a definitive agreement to acquire Metrics Design Automation Inc., a move that will expand its presence in the electronic design automation (EDA) industry. This acquisition will integrate Metrics' digital simulator, DSim, with Altair's Silicon Debug Tools, providing an advanced simulation environment for EDA and semiconductor clients.
Altair has also entered into a partnership with HP Inc (NYSE:HPQ). to enhance its Material Data Center, aiming to streamline the design and production processes for 3D-printed parts. This collaboration is expected to benefit users of Altair's Inspire Print3D and expand the adoption of 3D printing technology across various industries.
Furthermore, Altair has been included in the S&P MidCap 400 Index, a notable benchmark for mid-sized companies, reflecting its consistent growth and established position in various fields. Despite some underperformance in Q2 due to external factors, Altair remains optimistic about strong software revenue growth and adjusted EBITDA for the rest of 2024.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has recently seen its CEO, James Ralph Scapa, adjust his stake in the company, a move that invariably draws market attention. To provide additional context to these insider transactions, a glance at the company's financial health and market performance through InvestingPro data offers investors a broader perspective on Altair's current standing.
The company's market capitalization, as adjusted, stands at a robust $8.09 billion, reflecting significant investor confidence. Altair's price-to-earnings (P/E) ratio, a key indicator of market expectations of future earnings growth, is currently at a high 826.44, with an adjusted P/E based on the last twelve months as of Q1 2024 at 768.56. This suggests a premium valuation, which could be justified by the company's growth prospects or unique market position. Additionally, the Price / Book ratio for the same period is 10.62, indicating that the market values the company's assets at over ten times their accounting value.
Investors looking for growth may find Altair's revenue growth figures particularly compelling. The company has achieved a 7.11% growth in revenue over the last twelve months as of Q1 2024, with a quarterly revenue growth in Q1 2024 of 4.14%. This steady increase in revenue underscores Altair's ability to expand its market reach and improve its top-line performance.
For those interested in exploring further insights and tips, InvestingPro offers additional analysis that can help in making more informed decisions. Currently, there are 5 additional InvestingPro Tips available for Altair Engineering, which could provide deeper insights into the company's financials, market position, and future outlook. For investors considering leveraging these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Altair Engineering's fundamentals and recent insider transactions present a multifaceted picture for investors. While insider sales can have a variety of motivations, the company's solid revenue growth and strong market valuation are factors that might weigh more heavily on an investor's assessment of the company's future prospects.
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