JRS Investments LLC, a significant stakeholder in Altair Engineering Inc. (NASDAQ:ALTR), recently executed a series of transactions involving the company's Class A Common Stock. According to a recent SEC filing, JRS Investments sold a total of 6,500 shares of Altair Engineering's stock, generating approximately $666,848.
The sales were conducted on October 28, 2024, with the stock prices ranging from $102.0806 to $103.8409 per share. These transactions were made under a pre-established trading plan compliant with Rule 10b5-1, which had been set up earlier this year on March 11.
Following these transactions, JRS Investments now holds no shares of Altair Engineering's Class A Common Stock directly. The filing also noted a conversion of 6,500 shares of Class B Common Stock into Class A Common Stock, although this conversion did not involve any monetary exchange.
This disclosure comes as Altair Engineering continues to operate in the prepackaged software services sector, with its headquarters located in Troy, Michigan.
In other recent news, Altair Engineering Inc. reported a significant increase in Q2 2024 earnings, with total revenue reaching $148.8 million and software revenue hitting $135.4 million, marking a 10.6% year-over-year increase. The growth was primarily driven by a strong performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024. Altair also expanded its reach with the acquisition of Metrics Design Automation, contributing to its simulation-as-a-service offerings.
Furthermore, Altair, 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.
On the acquisition front, Altair is considering expressions of takeover interest, with Oppenheimer maintaining a positive stance on the company, reiterating an Outperform rating. Potential acquirers could include Electronic Design Automation leader Cadence Design (NASDAQ:CDNS) Systems and industrial design companies such as Autodesk (NASDAQ:ADSK), Dassault Systèmes, and multi-industrials like Siemens, Honeywell (NASDAQ:HON), and General Electric (NYSE:GE).
In addition, Altair expressed gratitude for the ongoing support from Matrix Capital Management, which decided to maintain its full investment position in the company. Analysts from Gartner (NYSE:IT) recognized Altair's leadership in data science and machine learning, reinforcing the company's position in the computational intelligence landscape. These are among the recent developments that have shaped Altair's trajectory.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has shown impressive market performance, with a 71.46% price total return over the past year. This strong performance aligns with the recent insider selling activity by JRS Investments LLC, potentially indicating that insiders believe the stock is currently well-valued.
The company's financial metrics provide additional context to its market position. Altair's market capitalization stands at $9.3 billion, reflecting its significant presence in the prepackaged software services sector. The company's revenue for the last twelve months as of Q2 2024 was $627.21 million, with a revenue growth of 6.85% during the same period. This growth, albeit modest, demonstrates Altair's ability to expand its business in a competitive market.
An InvestingPro Tip highlights that Altair's stock price has outperformed the S&P 500 in the past year, which corroborates the substantial price total return mentioned earlier. This outperformance may have influenced JRS Investments' decision to sell their shares.
Another relevant InvestingPro Tip notes that Altair holds more cash than debt on its balance sheet, indicating a strong financial position. This solid financial footing could be a factor in the company's ability to navigate market challenges and potentially fuel future growth initiatives.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Altair Engineering's financial health and market prospects.
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