Altair Engineering Inc. ( ALTR ) shares were up Wednesday following reports that Siemens AG is in discussions to acquire the company.

The Details: Siemens, a German engineering firm, has reportedly consulted with advisers on a potential acquisition of Michigan-based Altair, according to Bloomberg.

Altair provides engineering software solutions across multiple sectors, including aerospace, automotive, energy and financial services. The company is led by founder and CEO James Scapa.

The report indicates that this potential acquisition would mark one of Siemens' largest deals. The company has been shifting its focus toward software-driven, higher-margin products under the leadership of CEO Roland Busch, moving away from the heavy equipment businesses to better compete with automation peers such as Rockwell Automation Inc. and Schneider Electric SE.

Altair's stock has risen 20% year-to-date. The company currently has a market cap of approximately $8.7 billion. People familiar with the matter reportedly confirmed that Altair has been exploring a sale. Deliberations are ongoing and there is no guarantee Siemens will pursue a deal.

Is ALTR A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Altair Engineering ( ALTR ) has reported average annual revenue growth of 8.42% over the past five years.

It's also important to pay attention to valuation when deciding whether to buy a stock. Altair Engineering ( ALTR ) has a forward P/E ratio of 74.63. This means investors are paying $74.63 for each dollar of expected earnings in the future. The average forward P/E ratio of Altair Engineering's ( ALTR ) peers is 37.4.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

ALTR Price Action: Altair Engineering ( ALTR ) shares closed Wednesday up 3.54% at $106.65, according to Benzinga Pro.

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