In a recent transaction, the Christ Revocable Trust, a major shareholder of Altair Engineering Inc. (NASDAQ:ALTR), has sold a significant amount of shares in the company. On June 11, 2024, two separate sales transactions were reported, with a total of 99,000 shares being sold for over $9.2 million.
The first sale consisted of 48,696 shares at a weighted average price of $92.1911, with individual transactions ranging from $91.44 to $92.4375 per share. The second batch of 51,304 shares was sold at an average price of $92.7746, with prices varying between $92.44 and $93.25 per share. Following these transactions, the Christ Revocable Trust no longer holds any shares of Altair Engineering's Class A Common Stock.
These sales are notable not only due to their size but also because they represent a complete divestment by the trust from the software services company. Altair Engineering, headquartered in Troy, Michigan, specializes in prepackaged software solutions and operates within the technology sector.
Investors often monitor insider transactions as they can provide insights into the company's financial health and future prospects. The complete sale of Altair Engineering shares by the Christ Revocable Trust may be of particular interest to current and potential shareholders.
The details of the transactions were made public in a Form 4 filing with the Securities and Exchange Commission, as required by federal securities laws. The filing was signed by Raoul Maitra, attorney-in-fact for the Christ Revocable Trust, on June 13, 2024.
In other recent news, Altair Engineering Inc. posted robust Q1 2024 results, outperforming its own forecasts with total revenue of $172.9 million. The software revenue, a significant component of the total, stood at $158.4 million, marking a 6.9% year-over-year increase on a constant currency basis. The company also reported an adjusted EBITDA of $45.8 million and ended the quarter with a healthy cash reserve of $557.6 million.
In addition to its financial performance, Altair has been focusing on strategic acquisitions and is anticipating the launch of Altair SimSolid for electronics, pointing to a continued emphasis on expansion and innovation. The company also won the 2024 Google (NASDAQ:GOOGL) Cloud North America Partner of the Year Award for Diversity, Equity, and Inclusion, reflecting its commitment to these important areas.
Despite underperforming slightly in Q2 due to external factors such as currency impact and seasonality, Altair remains optimistic about future growth and market opportunities. The company is expanding its sales team approach into new verticals and focusing on executive engagement. These recent developments suggest a forward-looking approach from Altair, as it leverages market opportunities and navigates the competitive landscape with strategic acquisitions and innovative product offerings.
InvestingPro Insights
Amid the significant insider selling at Altair Engineering Inc. (NASDAQ:ALTR), the company's financial metrics offer a mixed view of its valuation and performance. With a market capitalization of $7.99 billion USD, Altair's P/E ratio stands at a lofty 822.97, which adjusts to 765.96 when considering the last twelve months as of Q1 2024. This high P/E ratio suggests a premium valuation, which could be a factor for the Christ Revocable Trust's decision to divest.
However, Altair's revenue growth remains positive, with a 7.11% increase over the last twelve months as of Q1 2024, and its gross profit margin impressively stands at 80.64%, indicating strong profitability in its operations. Moreover, the company has experienced substantial EBITDA growth of 259.85% during the same period, reflecting potential operational efficiency improvements or strategic initiatives yielding financial gains.
InvestingPro Tips highlight that while the insider transactions may raise questions, Altair's recent price performance has been robust, with a 25.25% one-year total return as of the 165th day of 2024. Additionally, the company is trading close to its 52-week high at 97.72% of the peak price. For investors seeking a comprehensive analysis, InvestingPro offers 21 additional tips to help evaluate the company's financial health and future prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to these valuable insights.
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