Form 4: Altair Engineering CEO James Scapa Executes Stock Transactions

James Scapa, CEO of Altair Engineering, reports transactions involving Class A and Class B Common Stock, including acquisitions, disposals, and conversions, as per a pre-arranged Rule 10b5-1 trading plan.

Summary

• On July 29, 2024, James Scapa, CEO of Altair Engineering Inc., engaged in multiple transactions involving the company's Class A and Class B Common Stock.
• These transactions included the acquisition of 6,500 shares of Class A Common Stock through conversions and the disposal of shares through sales at weighted average prices of $87.9646 and $88.5966.
• The sales were executed under a pre-arranged trading plan intended to comply with Rule 10b5-1 of the Exchange Act, established on March 11, 2024.
• The transactions were conducted both directly and indirectly through the James R. Scapa Declaration of Trust dated March 5, 1987, and JRS Investments LLC, for which Scapa serves as Trustee and Manager, respectively.
• Following the reported transactions, Scapa directly owns 134,045 shares of Class A Common Stock and indirectly owns shares through the trust and JRS Investments LLC.
• He also indirectly owns 1,193 shares of Class A Common Stock through his wife.
• Scapa also reports indirect ownership of 10,267,110 shares of Class B Common Stock through the trust and 6,652,682 shares through JRS Investments LLC.
• The filing also notes that 88,194 Class A Common Stock restricted stock units are unvested, as well as 20 Class A Common Stock restricted stock units held by his wife.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the transactions appear to be part of a pre-planned strategy (Rule 10b5-1) and do not necessarily indicate a change in the CEO's confidence in the company.

Positives

• The transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, which can provide transparency and reduce concerns about insider trading.

Risks

• Sales of a significant number of shares by the CEO could be perceived negatively by the market, potentially impacting the stock price.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies. Monitoring these transactions can provide insights into management's perspective on the company's value and future prospects. Rule 10b5-1 plans are frequently used to allow insiders to sell shares without raising concerns about insider trading.

Stakeholder Impact

• The transactions could have a minor impact on shareholders depending on how the market interprets the CEO's stock sales.

Key Dates