Altair Engineering Inc.'s (NASDAQ:ALTR) Chief Accounting Officer, Brian Gayle, has sold a number of shares in the company, as indicated by the latest filings with the Securities and Exchange Commission. The transactions, which took place on May 8, 2024, involved the sale of 173 shares of Class A Common Stock at a weighted average price of $84.3764 per share, resulting in a total transaction value of $14,597.
The shares were sold in multiple transactions with prices ranging from $84.14 to $84.38, as detailed in the footnotes of the filing. The sale was partly to satisfy the tax withholding obligation associated with the vesting of restricted stock units. Following the sale, Brian Gayle still owns 19,196 shares of Altair Engineering, which includes 4,552 Class A Common Stock restricted stock units that are yet to vest.
Investors often keep a close eye on insider transactions as they can provide insights into how the company's executives view the stock's value and prospects. In this case, the sale represents a minor portion of Gayle's total holdings, but it is still a notable event for stakeholders tracking the financial moves of company insiders.
Altair Engineering, based in Troy, Michigan, is known for its services in prepackaged software, and it continues to be a key player in the technology sector. The company's stock performance and insider transactions are closely monitored by investors looking to gauge the company's health and potential future performance.
For those interested in the complete details of the transactions, including the exact number of shares sold at each price point, the filing states that Brian Gayle is willing to provide full information upon request to Altair Engineering Inc., its security holders, or the SEC staff.
InvestingPro Insights
As Altair Engineering Inc. (NASDAQ:ALTR) navigates through the ever-evolving technology sector, the company's financial metrics provide a deeper understanding of its current market position. According to recent data from InvestingPro, Altair's market capitalization stands at a robust $7.11 billion, reflecting investor confidence in the company's value and growth prospects.
InvestingPro data further reveals a Price to Earnings (P/E) ratio of 726.69, which adjusts to 675.11 when considering the last twelve months as of Q1 2024. This high P/E ratio typically indicates that investors expect higher earnings growth in the future compared to companies with a lower P/E ratio. Additionally, the company has a Price to Book (P/B) ratio of 9.32, suggesting that the market values the company's assets significantly above their accounting worth, which could be a sign of strong future potential.
Revenue growth also appears promising, with a 7.11% increase over the last twelve months as of Q1 2024. This steady growth trajectory is complemented by a solid gross profit margin of 80.64%, indicating the company's ability to manage its cost of goods sold effectively and maintain profitability.
For investors interested in the company's efficiency and profitability metrics, Altair's Operating Income Margin stands at 3.5%, reflecting how much profit a company makes on a dollar of sales after paying for variable costs of production but before paying interest or tax.
One of the InvestingPro Tips highlights the importance of looking at revenue and profit margins in conjunction with each other to assess a company's financial health. In Altair's case, the strong gross profit margin combined with positive revenue growth suggests that the company is not only increasing its sales but also retaining a significant portion as profit.
Another InvestingPro Tip advises considering the company's earnings growth potential, as reflected in its PEG ratio. Altair's PEG ratio of 6.34 indicates investor expectations for future earnings growth, which should be evaluated alongside the high P/E ratio.
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