Altair Engineering Inc. (NASDAQ:ALTR) director Teresa A. Harris sold 620 shares of the company's stock on August 6, 2024, according to a recent SEC filing. The shares were sold at an average price of $82.57, netting a total of $51,193. The transaction was part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Following the sale, Harris still owns a significant number of shares in the company, totaling 21,242 Class A Common Stock, including 2,347 restricted stock units that are yet to vest. This latest sale represents a partial divestment from her holdings in the software services company, which specializes in prepackaged software solutions.
In addition to the sale, Harris also reported an exercised option to buy 620 shares of Altair Engineering stock. This transaction, however, did not involve any cash exchange as the options were fully vested and had been acquired at a conversion price of $4.52 per share. These options had vested in equal annual installments starting November 23, 2017, and were fully vested at the time of exercise.
Altair Engineering Inc. is known for its contributions to the software industry, particularly within the prepackaged software services sector. The company continues to be a key player in the market, with its stock performance being closely watched by investors.
The disclosed transactions provide insight into the trading activities of Altair Engineering's insiders, which can be a valuable piece of information for investors and market analysts. It is not uncommon for directors and other corporate insiders to buy and sell stock in their own companies, and such transactions are required to be disclosed publicly through SEC filings.
In other recent news, Altair Engineering Inc. reported robust growth in its Q2 2024 earnings, with total revenue hitting $148.8 million and software revenue reaching $135.4 million. This marks a 10.6% year-over-year increase in software revenue, now accounting for 91% of the company's total revenue. The growth is attributed to strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024. Altair's leadership in data science and machine learning was acknowledged by Gartner (NYSE:IT), and the company broadened its reach with the acquisition of Metrics Design Automation. Looking ahead, Altair provided positive Q3 and full-year 2024 guidance, expecting software revenue between $590 million and $600 million. The company's strong cash position of $507 million further supports their optimistic outlook. In the wake of these developments, Altair anticipates continued growth and higher gross margins.
InvestingPro Insights
As investors digest the latest insider trading activity at Altair Engineering Inc. (NASDAQ:ALTR), it's important to contextualize the company's financial health and stock performance with current data. Altair's market capitalization stands at $7.08 billion, reflecting its position in the competitive software services sector. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is notably high at 257.54, and even more so when adjusted for the last twelve months as of Q2 2024, at 279.08.
The company's revenue growth has been steady, with a 6.85% increase over the last twelve months as of Q2 2024. This is slightly higher than the quarterly growth rate of 5.41% for the same period. These figures suggest a consistent upward trend in Altair's financial performance. The gross profit margin stands at a robust 80.92%, indicating the company's ability to retain a significant portion of its revenue after the cost of goods sold is accounted for.
One of the InvestingPro Tips for Altair Engineering highlights the company's EBITDA growth, which has surged by 329.37% over the last twelve months as of Q2 2024. This impressive increase in earnings before interest, taxes, depreciation, and amortization may signal strong operational efficiency and potential for reinvestment in the company's growth.
Furthermore, Altair's stock has experienced a 1 Year Price Total Return of 27.84%, outperforming many peers in the prepackaged software services sector. Despite recent volatility, with a 1 Month Price Total Return of -17.51%, the company's stock is still trading at 82.63% of its 52-week high, suggesting that investors maintain a positive long-term outlook. According to InvestingPro, there are numerous additional tips available for Altair Engineering, which can provide investors with deeper insights into the company's stock performance and potential investment strategies.
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