We recently published a list of 10 Stocks Insiders Are Selling In March. In this article, we are going to take a look at where Altair Engineering Inc. (NASDAQ:ALTR) stands against other stocks Insiders are selling in March.
Wall Street experienced a challenging week, marked by turbulence as the broader market entered a correction, declining 10.1% from its record high in February. All three major indexes dropped between 2.3% and 3.1% over the week. However, Friday brought a little more optimism among investors as all three major indexes closed a bit higher. Blue-chip stocks closed 1.65% higher, the broader market index gained 2.13% and the NASDAQ Composite closed Friday session 2.61% higher.
This week continues to keep investors on their toes as the U.S. retail sales report, scheduled for release on Monday, will provide insights into consumer spending. According to Yahoo Finance, some experts believe investors will closely examine the report for signs of an economic slowdown. Experts polled by Dow Jones expect retail sales to have increased by 0.6% last month.
Investors are also closely watching for another significant update this week: the Federal Reserve’s decision on interest rates. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Examining recent insider trades can offer valuable insights, as executives often have a deeper understanding of their companies. For instance, when a CEO or CFO buys company stock, it may signal strong confidence in the business’s future.
However, insider selling doesn’t necessarily reflect a lack of confidence; it could be due to personal financial needs or a desire to diversify investments. These transactions are often executed through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing. While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
To identify the 10 stocks insiders are selling in March we used Insider Monkey’s insider trading stock screener and looked for stocks where at least three insiders sold shares this month. With each stock, we note the number of insiders who recently sold shares and the company’s market capitalization.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A computer programmer developing a software application for high-performance computing.
Altair Engineering Inc. (NASDAQ:ALTR)
Number of Insiders Selling: 10
Market Capitalization: $9.55 billion
Altair Engineering Inc. (NASDAQ:ALTR) provides software and cloud solutions for simulation, high-performance computing, data analytics, and AI, serving clients in the U.S. and globally. The Troy, Michigan-based company operates in two segments: Software, and Client Engineering Services.
In January, the company announced that its stockholders had approved the proposed merger agreement with Siemens Industry Software Inc., a subsidiary of Siemens AG. Under the agreement, Siemens will buy all the outstanding shares of Altair’s common stock for $113.00 per share in cash.
Upon completion of the transaction, Altair’s securities will no longer be listed on any public stock exchange.
For the full 2024, Altair Engineering (NASDAQ:ALTR) disclosed a total revenue of $665.8 million compared to $612.7 million in 2023, an increase of 8.7% in reported currency and 9.8% in constant currency. Net income amounted to $14.2 million, which compares to a net loss of $8.9 million in 2023. Adjusted EBITDA was $149.9 million, which compares to $129.1 million in the prior year. Free cash flow was $140.0 million, compared to $117.1 million for the full year of 2023.
In March, 10 insiders, including the company’s COO, and CFO, sold a total of around $334,850 worth of Altair Engineering shares at an average price of $111.41 per share. The stock gained 2.05% since the beginning of the year and is now trading at $111.35. Over the last 12 months, it returned 38.70%.
According to data from StockAnalysis, seven analysts have an average “Hold” rating on the Altair Engineering (NASDAQ:ALTR) stock with a price target of $101.0. The average price target indicates a decrease of 9.30% from the latest price.
Overall, ALTR ranks 4th on our list of stocks Insiders are selling in March. While we acknowledge the potential of ALTR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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