Have Altair Engineering Inc. (NASDAQ:ALTR) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 15, 2020
NasdaqGS:ALTR

We note that a Altair Engineering Inc. (NASDAQ:ALTR) insider, Andrea Suidara, recently sold US$70k worth of stock for US$48.77 per share. However we note that the sale only shrunk their holding by 7.0%.

View our latest analysis for Altair Engineering

Altair Engineering Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, James Scapa, sold US$535k worth of shares at a price of US$41.32 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$49.01. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 66% of James Scapa's holding.

Insiders in Altair Engineering didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:ALTR Insider Trading Volume November 15th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Altair Engineering

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Altair Engineering insiders own 36% of the company, worth about US$1.3b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Altair Engineering Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Altair Engineering.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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