On June 6, 2023, CEO and 10% Owner James Scapa sold 9,267 shares of Altair Engineering Inc (ALTR, Financial). This insider sell comes amidst a year where Scapa has sold a total of 141,678 shares and purchased none. The recent transaction and overall insider trends warrant a closer look at the company and its stock performance.
Who is James Scapa of Altair Engineering Inc?
James Scapa is the founder, CEO, and 10% owner of Altair Engineering Inc. He has been with the company since its inception in 1985 and has played a pivotal role in its growth and success. Under his leadership, Altair has become a global technology company providing solutions in product development, high-performance computing, and data analytics.
Altair Engineering Inc's Business Description
Altair Engineering Inc is a leading provider of enterprise-class engineering software and solutions, catering to a broad array of industries such as automotive, aerospace, electronics, and energy. The company's offerings include simulation, optimization, modeling, visualization, and data management software. Altair's solutions help clients streamline their product development process, reduce time-to-market, and enhance product performance.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, there have been no insider buys for Altair Engineering Inc, while there have been 40 insider sells. This trend indicates that insiders may be taking advantage of the stock's recent gains to cash in on their investments. The stock has been on an upward trajectory, with its price increasing from around $50 in June 2022 to $74.3 in June 2023.
James Scapa's recent sale of 9,267 shares is a relatively small portion of his total holdings, which could suggest that he still has confidence in the company's future prospects. However, the overall trend of insider selling raises questions about the stock's potential for further growth.
Valuation and GF Value
Shares of Altair Engineering Inc were trading for $74.3 apiece on the day of James Scapa’s recent sell. This gives the stock a market cap of $5.993 billion.
With a price of $74.3 and a GuruFocus Value of $64.37, Altair Engineering Inc has a price-to-GF-Value ratio of 1.15. This means the stock is modestly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company’s past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while James Scapa's recent sale of Altair Engineering Inc shares may not be a cause for immediate concern, the overall trend of insider selling and the stock's modest overvaluation should be taken into consideration by investors. It is essential to keep an eye on the company's performance and any changes in insider activity to make informed decisions about the stock's potential for future growth.
