Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on May 9, George J Christ, 10% Owner at Altair Engineering (NASDAQ:ALTR), executed a substantial insider sell as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Christ sold 87,217 shares of Altair Engineering. The total transaction value is $7,423,855.
During Friday's morning session, Altair Engineering shares down by 0.0%, currently priced at $85.68.
About Altair Engineering Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.
Altair Engineering: Financial Performance Dissected Revenue Growth: Over the 3 months period, Altair Engineering showcased positive performance, achieving a revenue growth rate of 4.14% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Analyzing Profitability Metrics:
- Gross Margin: The company excels with a remarkable gross margin of 82.13%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): With an EPS below industry norms, Altair Engineering exhibits below-average bottom-line performance with a current EPS of 0.2.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: Altair Engineering's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 778.82.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 11.48, Altair Engineering's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 93.39 reflects market recognition of Altair Engineering's value, positioning it as more highly valued compared to industry peers.
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Understanding the Significance of Insider Transactions Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Unlocking the Meaning of Transaction Codes When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Altair Engineering's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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