Sell ​​Alert: Christ Revocable Trust Cashes Out $7.42 Million in Altair Engineering Stock – Altair Engineering (NASDAQ:ALTR)

Christ Revocable Trust10% owner Altair Engineering (NASDAQ:ALTR) reported an insider sale on May 9, according to a new SEC filing.

What happened: Trust’s most recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday revealed the sale of 87,217 shares of shares Altair Engineering. The total transaction value is $7,423,855.

monitoring the market, Altair EngineeringShares rose 0.25% to $85.89 on Friday morning.

Discover Altair Engineering: A Closer Look

Altair Engineering Inc is a provider of enterprise-class engineering software that enables the creation of the entire product lifecycle from concept design to operational operation. The company’s integrated software suite optimizes design performance across multiple disciplines, including structures, motion, fluids, thermal management, systems modeling and embedded systems. The Company operates through two segments: Software, which includes the portfolio of software products such as solution and optimization technology products, modeling and visualization tools, industrial and conceptual design tools, and others; and Client Engineering Services, which provides client engineering services to support customers. The majority of revenue comes from the software segment.

The Economic Impact of Altair Engineering: An Analysis

Positive sales trend: Examining Altair Engineering’s financials over three months shows a positive balance. The company achieved a remarkable revenue growth rate of 4.14% As of March 31, 2024, which shows a significant increase in sales revenue. Compared to other companies in the information technology sector, the company faces challenges and achieves a growth rate that is below the average of its competitors.

Key profitability indicators:

• Gross margin: With a high gross margin of 82.13%The company demonstrates effective cost control and strong profitability compared to its competitors.

• Earnings per share (EPS): Altair Engineering’s earnings per share are below the industry average. The company faced challenges with a current EPS of 0.2. This indicates a possible decline in profits.

Debt management: Altair Engineering’s debt-to-equity ratio is below the industry average. With a ratio of 0.44The company is less dependent on debt financing and thus ensures a healthier balance between debt and equity, which can be viewed positively by investors.

Exploring the Landscape of Valuation Metrics:

• Price-earnings ratio (P/E ratio): Altair Engineering shares are currently valued at a premium level, which is reflected in the above-average P/E ratio of 778.82.

• Price to Sales Ratio (P/S): With an above-average P/S ratio of 11.48Altair Engineering shares are perceived as overvalued in the market, especially in terms of sales development.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): The company’s EV/EBITDA ratio 93.39 is above the industry average, suggesting that the market values ​​the company more for each unit of EBITDA. This could be due to factors such as strong growth prospects or superior operational efficiency.

Market capitalization analysis: Due to its smaller size, the company’s market capitalization is below the industry average. This could be due to factors such as growth expectations or operating capacity.

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Managing the impact of insider transactions on investments

Insider transactions are not the only factor that influences the investment decision, but they are a factor that should be taken into account.

In legal terms, an “insider” is defined as any officer, director or beneficial owner who owns more than ten percent of a company’s stock, as defined by Section 12 of the Securities Exchange Act of 1934. This includes C-suite executives and large hedge funds. These insiders are required to disclose their transactions via Form 4, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, this is particularly an indicator of his positive expectations of the stock.

Conversely, insider selling may not necessarily indicate a bearish stance on the stock and may be motivated by a variety of factors.

A closer look at important transaction codes

When it comes to transactions, investors typically focus on open market transactions listed in Table I of the Form 4 filing. A P in box 3 denotes a purchase while S indicates a sale. Transaction code C signals the conversion of an option and a transaction code A means a grant, award or other acquisition of securities from the Company.

See the full list of Altair Engineering’s insider trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.