George J. Christ, a significant shareholder of Altair Engineering Inc. (NASDAQ:ALTR), reported the sale of shares totaling approximately $10.66 million, according to a recent SEC filing. The transactions, which occurred on October 23, involved multiple sales at prices ranging from $101.92 to $109.13 per share.
Following these transactions, Christ, through the Christ Revocable Trust dated May 8, 2015, no longer holds any Class A common stock directly. The shares were sold in several tranches, with the largest single transaction involving 69,096 shares at a weighted average price of $107.08 per share.
Christ also holds shares indirectly through other trusts and entities, including The Dana Christ Irrevocable Trust and The Lauren Christ Irrevocable Trust, each holding 187,475 shares. Additionally, GC Investments LLC holds 300,000 shares. Christ serves as a trustee or manager for these entities, though he disclaims beneficial ownership beyond his pecuniary interest.
These transactions reflect the ongoing management of Christ's investment portfolio in Altair Engineering, a company based in Troy, Michigan, known for its prepackaged software services.
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. This 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.
In collaboration with the Technical University of Munich, Altair made a breakthrough in quantum computing, particularly in computational fluid dynamics (CFD), which could significantly increase the model size and scalability of CFD simulations compared to classical computing methods. On the investment front, Altair expressed gratitude for the ongoing support from Matrix Capital Management, which decided to maintain its full investment position in the company.
Oppenheimer maintained its positive stance on Altair, reiterating an Outperform rating amid reports that Altair is considering expressions of takeover interest. Strategic buyers such as Cadence Design (NASDAQ:CDNS) Systems, Autodesk (NASDAQ:ADSK), Dassault Systèmes, Siemens, Honeywell (NASDAQ:HON), and General Electric (NYSE:GE) were suggested as potential suitors. The speculated acquisition price for Altair is between $105 and $110 per share, benefiting from the positive market sentiment following the ANSYS-Synopsys deal. These are some of the recent developments surrounding Altair Engineering Inc.
InvestingPro Insights
As George J. Christ reduces his direct stake in Altair Engineering Inc. (NASDAQ:ALTR), investors might be curious about the company's current financial standing. According to InvestingPro data, Altair boasts a substantial market capitalization of $8.81 billion, indicating its significant presence in the prepackaged software services sector.
The company's revenue growth of 6.85% over the last twelve months as of Q2 2024 suggests steady expansion, aligning with the industry's dynamic nature. This growth is complemented by an impressive gross profit margin of 80.92%, highlighting Altair's efficiency in managing costs relative to revenue.
InvestingPro Tips provide additional context to Christ's share sale. One tip notes that Altair's stock price has shown strong momentum, outperforming 89% of other companies. This is evidenced by the robust 75.03% price return over the past year, which may have influenced the timing of Christ's decision to sell.
Another InvestingPro Tip points out that analysts have recently revised their earnings expectations upwards for the upcoming year. This positive outlook could signal confidence in Altair's future performance, despite the insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Altair Engineering, providing a deeper dive into the company's prospects and potential risks.
As Altair approaches its next earnings date on October 30, 2024, market watchers will be keen to see if the company's performance aligns with these positive indicators and justifies its current valuation, which includes a high P/E ratio of 319.42.
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