On August 16, 2023, James Scapa, CEO and 10% Owner of Altair Engineering Inc (ALTR, Financial), sold 10,000 shares of the company. This move is part of a broader trend of insider selling at Altair Engineering Inc, as we will explore in this article.
Who is James Scapa?
James Scapa is the founder, CEO, and a 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 development. Under his leadership, Altair has become a global technology company providing solutions in product development, high-performance computing, and data analytics.
About Altair Engineering Inc
Altair Engineering Inc is a leading provider of enterprise-class engineering software enabling innovation across the entire product lifecycle from concept design to in-service operation. The company's technology optimizes the performance, robustness, and durability of products while also reducing their weight and material usage, leading to significant business benefits for its customers.
Insider Sell Analysis
Over the past year, James Scapa has sold a total of 171,678 shares and has not purchased any shares. This recent sale of 10,000 shares is part of this broader trend. The insider transaction history for Altair Engineering Inc shows a total of 53 insider sells over the past year, with no insider buys.
The trend of insider selling can sometimes be a bearish signal, as it could indicate that insiders believe the stock is overvalued or that the company's future prospects are not as promising. However, it's important to note that insider selling can also occur for personal reasons unrelated to the company's performance.
Stock Price and Valuation
On the day of James Scapa's recent sell, shares of Altair Engineering Inc were trading at $62.47, giving the company a market cap of $4.942 billion.
Despite the insider selling, Altair Engineering Inc appears to be modestly undervalued based on its GuruFocus Value. With a price of $62.47 and a GuruFocus Value of $69.17, the stock has a price-to-GF-Value ratio of 0.9.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider selling by James Scapa and other insiders at Altair Engineering Inc may raise some eyebrows, the company's stock appears to be modestly undervalued based on its GF Value. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
