Troy, MI—Altair Engineering Inc. (NASDAQ:ALTR) recently reported that its Chief Product Strategy Officer, Kunju Ravi, executed a stock sale involving the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Ravi sold 360 shares at a price of $103.65 per share on November 11, 2024. This transaction amounted to a total value of $37,314.
The filing also noted that the shares were sold to satisfy tax withholding obligations related to the vesting of restricted stock units. Following this transaction, Ravi holds 30,305 shares of Altair Engineering, which includes 7,126 unvested restricted stock units.
In other recent news, Altair Engineering Inc. has been making significant strides in its business operations. The company's Q2 2024 earnings showed a notable increase, with total revenue reaching $148.8 million and software revenue hitting $135.4 million, marking a 10.6% year-over-year growth. This growth was primarily driven by a robust performance in the aerospace and defense sector and the release of enhanced AI capabilities in Altair HyperWorks 2024.
Altair has entered a definitive agreement to be acquired by Siemens (ETR:SIEGn) for $10.6 billion, a move that RBC Capital believes warrants an increase in its stock price target to $113. However, William Blair downgraded Altair's stock from Outperform to Market Perform following the acquisition announcement.
In the realm of technological advancements, Altair, in collaboration with the Technical University of Munich, achieved a breakthrough in quantum computing, particularly in computational fluid dynamics. This development could notably increase the model size and scalability of simulations compared to classical computing methods.
Altair has also announced a collaboration with the European Space Agency (ESA) to provide its aerospace technology to various European entities, aiming to boost aerospace innovation. Matrix Capital Management has decided to maintain its full investment position in Altair, signaling confidence in the company's long-term strategic value. These are the recent developments that continue to shape Altair's trajectory in the engineering software solutions market.
InvestingPro Insights
Altair Engineering Inc. (NASDAQ:ALTR) has shown robust financial performance, as evidenced by recent InvestingPro data. The company's market capitalization stands at $8.84 billion, reflecting its significant presence in the engineering software industry. Notably, Altair's revenue for the last twelve months as of Q3 2024 reached $644.66 million, with a healthy revenue growth of 7.15% over the same period.
The company's strong gross profit margin of 81.29% underscores its efficiency in managing costs and maintaining profitability. This high margin is particularly impressive in the competitive software sector and suggests Altair's products command premium pricing.
InvestingPro Tips highlight Altair's momentum in the market. The stock has delivered a robust 48.51% total return over the past year, outperforming many of its peers. Additionally, Altair's share price is currently at 91.86% of its 52-week high, indicating strong investor confidence in the company's prospects.
These financial metrics and market performance provide context to the recent insider transaction by Chief Product Strategy Officer Kunju Ravi. While the sale was primarily to cover tax obligations, it's worth noting that Altair's solid financial footing and market position may continue to influence insider holdings and transactions.
For investors seeking a deeper understanding of Altair's financial health and future outlook, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
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