In a recent transaction, the trustee of the James R. Scapa Declaration of Trust, which is a significant shareholder in Altair Engineering Inc. (NASDAQ:ALTR), sold a notable amount of stock. According to the latest filing with the Securities and Exchange Commission, the trust sold shares of the company's Class A Common Stock for a total value exceeding $400,000.
The sale was executed on March 18, 2024, and involved two separate transactions. In the first transaction, 500 shares were sold at a weighted average price of $79.8677, with prices ranging from $79.295 to $80.21. The second transaction saw the sale of 4,500 shares at a weighted average price of $80.8396, with individual sales prices between $80.33 and $81.23. The total value for these sales was approximately $403,712.
It's important to note that these sales were conducted under a pre-arranged trading plan that complies with Rule 10b5-1 of the Exchange Act. Such plans allow insiders to sell shares over a predetermined period of time to avoid concerns about transactions based on material non-public information.
In the same filing, it was also reported that the trustee acquired 5,000 shares of Class A Common Stock; however, this transaction was executed at a price of $0.0, indicating that it might have been related to a conversion or similar non-market transaction rather than a purchase in the open market.
Investors often monitor insider transactions as they provide insights into how executives and significant shareholders view the company's stock. The sales by the James R. Scapa Declaration of Trust are likely to be of particular interest given the trustee's role and the size of the transactions.
Altair Engineering Inc., headquartered in Troy, Michigan, specializes in prepackaged software services and has been a player in the technology sector, as indicated by its SIC classification.
For those interested in the full details of the transactions, including the specific prices at which shares were sold, the reporting person has committed to providing full information upon request to Altair Engineering Inc., its security holders, or the SEC staff.
InvestingPro Insights
As investors digest the recent insider transactions of Altair Engineering Inc. (NASDAQ:ALTR), the company's financial metrics may offer additional context to understand its market position. Altair's market capitalization stands at $6.65 billion, reflecting its significant presence in the software services industry. Despite a challenging market, the company has maintained a positive revenue growth, with the last twelve months as of Q4 2023 showing a 7.07% increase, indicating a steady business performance.
Altair's gross profit margin is notably high at 80.12% for the same period, which underscores the company's ability to manage its cost of goods sold effectively and maintain profitability. The EBITDA growth is particularly impressive, with a 110.48% increase, suggesting that the company's earnings before interest, taxes, depreciation, and amortization have significantly improved, potentially reflecting operational efficiencies or increased demand for Altair's offerings.
InvestingPro Tips highlight that while the P/E ratio is deeply negative at -729.91, this may not fully capture the company's future growth potential or current market sentiment. Moreover, the InvestingPro Fair Value estimate is $63.31, which contrasts with the recent analyst target of $90, suggesting that investors may wish to explore further to understand these differing valuations.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips to help navigate the complexities of stock valuation and investment decisions. By using the coupon code PRONEWS24, readers can enjoy an extra 10% off on a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of insights that could inform their investment strategy. With numerous additional tips available on InvestingPro, investors can deepen their understanding of Altair's financial health and market prospects.
Understanding the interplay between insider transactions and a company's financial health is crucial for investors. The recent sale by the trustee of the James R. Scapa Declaration of Trust, set against the backdrop of Altair's solid gross profit margin and EBITDA growth, offers a multifaceted view of the company's current status. As Altair Engineering Inc. approaches its next earnings date on May 2, 2024, market watchers will be keenly observing how these financial indicators and insider activities might influence the stock's performance.
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