Altair Stock Buy Hold or Sell Recommendation

ALTR
 Stock
  

USD 52.07  0.43  0.82%   

Given the investment horizon of 90 days and your highly speculative risk level, our recommendation regarding Altair Engineering is 'Strong Buy'. Macroaxis provides Altair Engineering buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ALTR positions. The advice algorithm takes into account all of Altair Engineering's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Altair Engineering's buy-and-hold perspective. Please continue to Altair Engineering Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Altair and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Altair Engineering.

Execute Altair Engineering Buy or Sell Advice

The Altair recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Altair Engineering. Macroaxis does not own or have any residual interests in Altair Engineering or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Altair Engineering's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Altair EngineeringBuy Altair Engineering
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Altair Engineering has a Risk Adjusted Performance of (0.19), Jensen Alpha of (0.15), Total Risk Alpha of (0.006899) and Treynor Ratio of (0.34)
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Altair Engineering. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Altair Engineering is not overpriced, please confirm all Altair Engineering fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Altair Engineering has a price to earning of 29.59 X, we suggest you to validate Altair Engineering market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Altair Engineering Trading Alerts and Improvement Suggestions

Altair Engineering generated a negative expected return over the last 90 days
Altair Engineering is unlikely to experience financial distress in the next 2 years
The company reported the previous year's revenue of 532.18 M. Net Loss for the year was (8.79 M) with profit before overhead, payroll, taxes, and interest of 403.54 M.
Over 98.0% of the company shares are held by institutions such as insurance companies
Latest headline from indiandefencenews.info: New Developments in the Simulation Software Industry- Altair Engineering, Bentley Systems, ANSYS, PTC, Siemens PLM Software, Autodesk Indian Defence News - Indian Defence News

Altair Engineering current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Altair analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Altair analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price77.00
Target Median Price76.00
Target High Price100.00
Recommendation Mean2.20
Number Of Analyst Opinions6
Target Low Price62.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Altair Engineering Returns Distribution Density

The distribution of Altair Engineering's historical returns is an attempt to chart the future uncertainty of Altair Engineering's future price movements. The chart of the probability distribution of Altair Engineering stock daily returns describes the distribution of returns around its average expected value. We use Altair Engineering price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Altair Engineering returns is essential to provide solid investment advice for Altair Engineering stock.
Mean Return-0.34Value At Risk-4.05
Potential Upside4.03Standard Deviation2.54
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Altair Engineering historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Altair Engineering Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(7.52 M)(6.66 M)(9.66 M)(6.09 M)(7.85 M)(8.47 M)
Depreciation Amortization and Accretion11.75 M14.73 M21.52 M23.81 M25.64 M23.08 M
Net Cash Flow or Change in Cash and Cash Equivalents22.44 M(3.89 M)187.81 M18.05 M172.47 M186.08 M
Net Cash Flow Business Acquisitions and Disposals(15.58 M)(203.44 M)(25.72 M)(41.03 M)(53.98 M)(58.24 M)
Issuance Purchase of Equity Shares115.37 M137.65 M1.51 M1.71 M202.26 M218.23 M
Issuance Repayment of Debt Securities(85.68 M)30.95 M190.92 M30 M(30 M)(30.79 M)
Net Cash Flow from Financing29.56 M167.53 M191.92 M31.25 M175.95 M141.37 M
Net Cash Flow from Investing(24.85 M)(206.21 M)(35.84 M)(49.09 M)(62.48 M)(67.41 M)
Net Cash Flow from Operations16.09 M36.23 M31.39 M32.88 M61.62 M49.84 M
Effect of Exchange Rate Changes on Cash1.64 M(1.44 M)342 K3.01 M(2.62 M)(2.69 M)
Share Based Compensation47.28 M3.34 M8.53 M21.36 M44.55 M48.07 M

Altair Engineering Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Altair Engineering or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Altair Engineering stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Altair stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.15
β
Beta against DOW1.04
σ
Overall volatility
2.59
Ir
Information ratio -0.06

Altair Engineering Volatility Alert

Altair Engineering exhibits very low volatility with skewness of -0.28 and kurtosis of 0.18. However, we advise investors to further study Altair Engineering technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Altair Engineering's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Altair Engineering's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Altair Engineering Implied Volatility

Altair Engineering's implied volatility exposes the market's sentiment of Altair Engineering stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Altair Engineering's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Altair Engineering stock will not fluctuate a lot when Altair Engineering's options are near their expiration.

Altair Engineering Fundamentals Vs Peers

Comparing Altair Engineering's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Altair Engineering's direct or indirect competition across all of the common fundamentals between Altair Engineering and the related equities. This way, we can detect undervalued stocks with similar characteristics as Altair Engineering or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Altair Engineering's fundamental indicators could also be used in its relative valuation, which is a method of valuing Altair Engineering by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Altair Engineering to competition
FundamentalsAltair EngineeringPeer Average
Return On Equity(1.77) %(0.31) %
Return On Asset1.09 %(0.14) %
Profit Margin(1.65) %(1.27) %
Operating Margin3.27 %(5.51) %
Current Valuation4.12 B16.62 B
Shares Outstanding50.79 M571.82 M
Shares Owned by Insiders1.73 %10.09 %
Shares Owned by Institutions98.46 %39.21 %
Number of Shares Shorted2.67 M4.71 M
Price to Earning29.59 X28.72 X
Price to Book6.81 X9.51 X
Price to Sales7.71 X11.42 X
Revenue532.18 M9.43 B
Gross Profit403.54 M27.38 B
EBITDA43.04 M3.9 B
Net Income(8.79 M)570.98 M
Cash and Equivalents413.74 M2.7 B
Cash per Share5.22 X5.01 X
Total Debt229.53 M5.32 B
Debt to Equity0.37 %48.70 %
Current Ratio1.24 X2.16 X
Book Value Per Share7.65 X1.93 K
Cash Flow from Operations61.62 M971.22 M
Short Ratio14.90 X4.00 X
Earnings Per Share(0.07) X3.12 X
Price to Earnings To Growth1.25 X4.89 X
Number of Employees3.05 K18.84 K
Beta1.52-0.15
Market Capitalization4.11 B19.03 B
Total Asset5.67 B29.47 B
Retained Earnings(88.91 M)9.33 B
Working Capital2.71 B1.48 B
Current Asset3.29 B9.34 B
   Exercise or conversion by Schramm Uwe of 3000 shares of Altair Engineering subject to Rule 16b-3 [view details]

About Altair Engineering Buy or Sell Advice

When is the right time to buy or sell Altair Engineering? Buying financial instruments such as Altair Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Altair Engineering investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 (projected)
Receivables137.56 M113.37 M
Inventories1.77 M1.69 M

Use Investing Ideas to Build Portfolios

In addition to having Altair Engineering in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Processed Foods Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Processed Foods Theme or any other thematic opportunities.
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Please continue to Altair Engineering Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Altair Engineering information on this page should be used as a complementary analysis to other Altair Engineering's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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Is Altair Engineering's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Altair Engineering. If investors know Altair will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Altair Engineering listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.28
Market Capitalization
4.2 B
Quarterly Revenue Growth YOY
0.064
Return On Assets
0.0106
Return On Equity
-0.0229
The market value of Altair Engineering is measured differently than its book value, which is the value of Altair that is recorded on the company's balance sheet. Investors also form their own opinion of Altair Engineering's value that differs from its market value or its book value, called intrinsic value, which is Altair Engineering's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Altair Engineering's market value can be influenced by many factors that don't directly affect Altair Engineering's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Altair Engineering's value and its price as these two are different measures arrived at by different means. Investors typically determine Altair Engineering value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altair Engineering's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.