Exploring Altair Engineering Inc. (ALTR) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Altair Engineering Inc. (ALTR) and what drives their investment decisions? As of December 31, 2024, institutional investors held approximately 67,799,524 shares. With Siemens set to acquire Altair for approximately $10 billion or $113 per share, a 19% premium over the October 21, 2024 closing price, understanding the ownership structure is more crucial than ever. Let’s delve into who owns ALTR and the potential motivations behind their investment strategies, especially considering Altair's reported total revenue for 2024 was $665.8 million, an increase of 8.7% compared to 2023.

Altair Engineering Inc. (ALTR) Who Invests in [Company Name] and Why?

Understanding the investor profile of Altair Engineering Inc. (ALTR) provides valuable insights into market sentiment and the factors driving investment decisions. A diverse range of investors, from institutional giants to individual shareholders, are drawn to Altair for various reasons.

Key Investor Types:

The ownership of Altair Engineering Inc. is distributed among several key investor types:

• Institutional Investors: These entities, including mutual funds, pension funds, and asset managers, hold a significant portion of ALTR shares. As of March 2025, institutional investors hold approximately 62.82% of the shares. Major holders include firms like BlackRock, Inc. (holding 8.72% of shares as of December 30, 2024), and Vanguard Group Inc. (holding 8.04% of shares as of December 30, 2024).
• Mutual Funds: Represent a substantial portion of ALTR's investor base. For instance, Pictet-Robotics Fund held 2.62% of shares as of September 29, 2024.
• Hedge Funds: These funds also maintain positions in ALTR, with Matrix Capital Management Company, LP holding a significant stake of 14.26% as of December 30, 2023. However, recent data indicates that hedge fund holdings in ALTR decreased by 275.5K shares last quarter, based on 11 tracked hedge funds.
• Retail Investors: This includes the general public and smaller investment entities.
• Company Insiders: Executives and directors also hold shares, with a substantial portion held by the founder, James R. Scapa. However, insider holdings have decreased from 1.71% to 1.49% as of March 2025.

Investment Motivations:

Several factors attract investors to Altair Engineering Inc.:

• Growth Prospects: Altair operates in high-growth areas such as simulation, high-performance computing (HPC), data analytics, and artificial intelligence (AI). The company's solutions are integral across numerous industries, solidifying its role as a key innovator.
• Market Position: Altair maintains a significant position in the simulation, HPC, and data analytics software markets, leveraging its integrated suite and flexible licensing model.
• Financial Health: The company's transition towards subscription revenue enhances predictability and long-term customer value. In Q3 2024, the non-GAAP gross margin stood at a strong 79.6%, and the non-GAAP operating margin was approximately 14%.
• Strategic Acquisitions: Siemens' acquisition of Altair in late 2024, with shareholders receiving $113 per share, underscores the company's value and potential synergies.

Investment Strategies:

Investors in Altair Engineering Inc. employ various strategies:

• Long-Term Holding: Many institutional investors, such as Vanguard and BlackRock, adopt a long-term holding strategy, reflecting confidence in Altair's sustained growth and market leadership.
• Growth Investing: Some investors focus on growth stocks with strong fundamentals. For example, Validea’s P/B Growth Investor model, based on the strategy of Partha Mohanram, rates ALTR highly, looking for low book-to-market stocks with sustained future growth characteristics.
• Value Investing: While growth investing is prominent, some strategies may identify value in ALTR based on its market position and future outlook.

Key Financial Highlights:

Altair's financial performance and strategic initiatives underpin investor confidence:

• Revenue Projections: Altair projects substantial total revenues for fiscal year 2024, estimated between $650 million and $670 million.
• Gross Margin: The non-GAAP gross margin for Q3 2024 was a robust 79.6%.
• Operating Margin: Altair achieved a non-GAAP operating margin of approximately 14% in Q3 2024.

Major Shareholders:

The top shareholders in Altair Engineering Inc. reflect a mix of institutional and fund investors:

Understanding the composition and motivations of Altair Engineering Inc.'s investor base is crucial for assessing the company's market position and future prospects. The blend of institutional, hedge fund, and retail investors, along with significant insider ownership, creates a balanced ownership structure that supports both stability and growth.

For further insights into Altair Engineering Inc.'s financial standing, explore: Breaking Down Altair Engineering Inc. (ALTR) Financial Health: Key Insights for Investors

Altair Engineering Inc. (ALTR) Institutional Ownership and Major Shareholders of Altair Engineering Inc. (ALTR)

Institutional ownership in Altair Engineering Inc. (ALTR) reflects the degree of confidence that large financial organizations have in the company's potential. These institutions, which include mutual funds, pension funds, and hedge funds, often have significant resources for in-depth analysis and due diligence, making their investment decisions closely watched by other investors.

As of December 31, 2024, the top institutional holders of Altair Engineering Inc. (ALTR) include:

• Vanguard Group Inc holds 4,878,791 shares, representing about 6.05% of the company.
• BlackRock Fund Advisors holds 4,317,336 shares, representing approximately 5.35%.
• JPMorgan Investment Management Inc. holds 2,741,578 shares, holding about 3.40% of the company's shares.
• Geode Capital Management LLC holds 1,392,146 shares, accounting for roughly 1.73%.
• State Street Global Advisors, Inc. holds 1,388,290 shares, which is about 1.72%.

These major institutional investors wield considerable influence due to the size of their holdings. Their trading activities can significantly affect Altair Engineering Inc. (ALTR)'s stock price and market stability. For instance, a large purchase can drive up demand, while a substantial sell-off may create downward pressure. Additionally, these institutions often engage with company management on strategic decisions, potentially influencing the direction and policies of Altair Engineering Inc. (ALTR).

Recent changes in institutional ownership can provide insights into the evolving sentiment surrounding Altair Engineering Inc. (ALTR). Increases in holdings may indicate growing confidence in the company's future prospects, while decreases could signal concerns or shifts in investment strategy.

For example, looking at recent transactions:

• Vanguard Group Inc increased its stake by 1.49% in the first quarter of 2024.
• BlackRock Fund Advisors decreased its stake by 4.11% in the first quarter of 2024.
• Geode Capital Management LLC increased its stake by 3.43% in the first quarter of 2024.

These changes reflect ongoing evaluations and adjustments to portfolio allocations by these major investors. Monitoring these shifts can offer valuable perspectives on the perceived value and risk associated with investing in Altair Engineering Inc. (ALTR).

Here's a summary table of key institutional ownership data as of December 31, 2024:

Understanding the dynamics of institutional ownership in Altair Engineering Inc. (ALTR) provides critical context for investors. It highlights not only who the major players are but also how their actions can influence the company’s market performance and strategic direction. Keeping an eye on these trends is essential for making informed investment decisions.

To gain more insight into the foundational principles guiding Altair Engineering Inc. (ALTR), consider exploring: Mission Statement, Vision, & Core Values of Altair Engineering Inc. (ALTR).

Altair Engineering Inc. (ALTR) Key Investors and Their Impact on Altair Engineering Inc. (ALTR)

Understanding the investor profile of Altair Engineering Inc. (ALTR) provides valuable insights into the company's stability, growth potential, and strategic direction. Examining who is investing, their motivations, and their recent activities can help stakeholders gauge market sentiment and potential future performance. Here’s a detailed look at key aspects of Altair Engineering Inc. (ALTR)'s investor landscape.

Notable Investors:

Identifying significant investors in Altair Engineering Inc. (ALTR) involves looking at institutional holders, mutual funds, and any prominent individual investors. These entities often hold substantial stakes and can influence the company's stock performance and strategic decisions. While specific details on all major investors can fluctuate, some typical key players to watch include:

• Institutional Investors: These are typically large firms such as mutual funds, pension funds, insurance companies, and hedge funds. Examples often include firms like Vanguard Group, BlackRock, and State Street Corporation, which manage vast assets and have significant holdings in numerous publicly traded companies.
• Mutual Funds: Various mutual funds focusing on technology, growth, or diversified portfolios may hold shares of Altair Engineering Inc. (ALTR). Monitoring their investment decisions can reflect broader market sentiment toward the company.
• Individual Investors: While less common to have a major impact, influential individual investors or activist investors can also hold significant positions, potentially advocating for specific changes or strategies within the company.

Investor Influence:

The influence of major investors on Altair Engineering Inc. (ALTR) can manifest in several ways:

• Stock Movements: Large purchases or sales by major investors can cause significant fluctuations in the stock price. For example, a large institutional investor increasing its stake can signal confidence in the company, driving the price up. Conversely, a large sell-off can create downward pressure.
• Company Decisions: Significant shareholders can influence corporate governance through voting rights on key issues such as board member elections, executive compensation, and major strategic decisions. Activist investors may push for specific changes to improve performance or unlock value.
• Market Perception: The presence of well-respected and successful investors can enhance the company's reputation and attract further investment. Conversely, concerns raised by prominent investors can create caution among other market participants.

Recent Moves:

Keeping track of recent activities by major investors provides timely insights into changing sentiments and potential future actions. This includes:

• Buying/Selling Trends: Monitoring SEC filings (e.g., Form 13F for quarterly holdings) reveals whether institutional investors are increasing or decreasing their positions. Significant changes can indicate shifts in confidence or strategic realignment.
• Activist Interventions: Any public campaigns or private engagements by activist investors can signal potential changes in company strategy or operations. These actions often aim to improve shareholder value through various means, such as cost-cutting, restructuring, or strategic divestitures.

To illustrate, let's consider a hypothetical scenario based on typical investor behavior:

Understanding these dynamics requires continuous monitoring of financial news, SEC filings, and investor relations updates. This ongoing analysis helps in forming a comprehensive view of Altair Engineering Inc. (ALTR)'s investor profile and its potential implications.

Altair Engineering Inc. (ALTR) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to ownership changes is crucial for assessing the potential future of Altair Engineering Inc. (ALTR). Shifts in major shareholdings can signal confidence or concern about the company's prospects, influencing stock performance and overall market perception.

Recent market reactions to changes in ownership or large investor moves involving Altair Engineering Inc. (ALTR) provide insights into how the investment community values the company's stock. For example, significant acquisitions by institutional investors may drive the stock price up, reflecting increased confidence in Altair's growth potential. Conversely, substantial sales by major shareholders could lead to price declines, signaling potential concerns about the company's future performance.

Here's a general overview of factors influencing investor sentiment:

• Earnings Reports: Positive earnings surprises and strong revenue growth typically boost investor confidence.
• Strategic Initiatives: Announcements of new partnerships, product launches, or market expansions can positively influence sentiment.
• Industry Trends: Favorable trends in the software and technology sectors generally support a positive outlook.
• Economic Conditions: Overall economic stability and growth often correlate with increased investor optimism.

Analyst perspectives play a vital role in shaping investor sentiment. Analysts offer insights on Altair Engineering Inc. (ALTR)'s future, considering factors like financial performance, competitive positioning, and industry trends. Their recommendations and price targets can significantly influence investment decisions and market reactions. For instance, positive ratings from reputable analysts can attract more investors, driving up the stock price, while downgrades may lead to sell-offs.

The identities of major shareholders can also impact market perception. Institutional investors, such as mutual funds and pension funds, often conduct thorough research before investing, and their presence can lend credibility to Altair Engineering Inc. (ALTR). Conversely, if activist investors take large positions and push for significant changes, it could create uncertainty and volatility in the stock.

Here's a look at how different types of investors might view Altair Engineering Inc. (ALTR):

• Institutional Investors: Often focus on long-term growth potential, evaluating factors like revenue growth, profitability, and market share.
• Retail Investors: May be influenced by short-term price movements and media coverage.
• Growth Investors: Seek companies with high growth rates and innovative products.
• Value Investors: Look for undervalued companies with strong fundamentals.

Keeping an eye on these dynamics helps stakeholders understand the forces shaping Altair Engineering Inc. (ALTR)'s market performance and investor confidence.