Form 4: Altair Engineering CEO James Scapa Executes Stock Sale Under 10b5-1 Plan

Altair Engineering's CEO, James Ralph Scapa, reported the sale of Class A Common Stock under a pre-arranged 10b5-1 trading plan, alongside acquisitions and disposals affecting his direct and indirect holdings.

Summary

• On June 10, 2024, James Ralph Scapa, CEO of Altair Engineering Inc., engaged in multiple transactions involving Class A Common Stock.
• These transactions included the acquisition of 6,500 shares and the disposal of shares at varying prices, ranging from $91.99 to $94.20.
• The sales were executed under a pre-arranged trading plan intended to comply with Rule 10b5-1 of the Exchange Act, which was established on March 11, 2024.
• Scapa's transactions affected both his direct holdings and those held indirectly through the James R. Scapa Declaration of Trust and JRS Investments LLC.
• Following these transactions, Scapa directly owns 134,045 shares of Class A Common Stock, and his wife owns 1,193 shares indirectly.
• He also holds a significant number of Class B Common Stock, convertible into Class A Common Stock, indirectly through the trust and JRS Investments LLC.
• The filing also indicates that Scapa serves as Trustee for the James R. Scapa Declaration of Trust and Manager for JRS Investments LLC, disclaiming beneficial ownership except to the extent of his pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine disclosure of stock transactions under a pre-arranged plan. There's no indication of significant positive or negative implications for the company.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions. It's common for executives to utilize 10b5-1 plans to sell shares over time to avoid accusations of trading on inside information. The market will likely interpret this as a planned diversification strategy by the CEO.

Comparison to Industry Standards

• Executive stock sales are a common occurrence in publicly traded companies.
• The use of 10b5-1 plans is a standard practice to ensure compliance with insider trading regulations, similar to practices at companies like Autodesk or Ansys.
• The reported price range of $91.99 to $94.20 is within the typical trading range for a company like Altair, and similar to other tech companies in the simulation and engineering software space.

Stakeholder Impact

• The stock sale could have a minor impact on shareholders, potentially creating slight downward pressure on the stock price in the short term.
• However, given the pre-planned nature of the sales, the impact is likely to be minimal.

Key Dates