Eric Ryan Shander, the President and Chief Financial Officer of Powerschool Holdings, Inc. (NYSE:PWSC), has sold a total of 38,840 shares of the company's Class A Common Stock, in two separate transactions on July 9 and July 10, according to recent filings with the Securities and Exchange Commission. The total value of the shares sold is over $874,000, with the price per share ranging from $22.50 to $22.51.
On July 9, Shander sold 30,914 shares at an average price of $22.51, and on the following day, he sold an additional 7,926 shares at a slightly lower average price of $22.50. These sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Following these transactions, Shander still owns a substantial number of shares in the company, with his holdings totaling 454,724 shares of Class A Common Stock. The sales have been publicly disclosed as required by SEC regulations, providing transparency to investors and the market.
Powerschool Holdings, headquartered in Folsom, California, is a leading provider of cloud-based software for K-12 education. It's noteworthy that insider transactions are closely watched by investors as they can provide insights into executives' perspectives on the company's future performance.
Investors and analysts often view insider sales for various reasons, including diversifying personal investment portfolios or funding personal expenses. Therefore, such transactions should not always be considered as a reflection of the executive's belief in the company's current or future performance.
These recent transactions are now part of the public record, and the details, including the exact number of shares sold at each price point within the range, are available upon request from Powerschool Holdings or the SEC.
In other recent news, PowerSchool Holdings Inc. is set to be acquired by Bain Capital in a deal valued at $5.6 billion, which is expected to be finalized in the second half of 2024. This has led to several analyst firms, including Raymond James, Piper Sandler, Jefferies, RBC Capital, Needham, and Cantor Fitzgerald, downgrading the stock and aligning their price targets with the acquisition price of $22.80 per share. PowerSchool's Q1 revenue was reported at $185.0 million, slightly above consensus, and adjusted EBITDA exceeded expectations by 6.2%. The company has also been integrating AI capabilities into its product offerings, closing deals worth approximately $400,000 and building a pipeline nearing $10 million. These are recent developments providing investors with key points of interest.
InvestingPro Insights
In light of the recent insider selling activity at Powerschool Holdings, Inc. (NYSE:PWSC), investors may be seeking additional context to understand the company's financial health and market position. According to InvestingPro data, Powerschool Holdings is currently trading at a high revenue valuation multiple, with a market capitalization of $4.59 billion. Despite not being profitable over the last twelve months, analysts are predicting that the company will turn a profit this year, which could be a pivotal factor for future stock performance.
The company's revenue has shown healthy growth, with a 12.9% increase in the last twelve months as of Q1 2024 and an even more impressive quarterly revenue growth of 16.0% for Q1 2024. However, the P/E ratio stands at -94.98, reflecting investor concerns about the company's earnings. Additionally, the PEG ratio, which measures the relative value of the stock based on expected earnings growth, is at 1.5, suggesting that the company's stock price is somewhat aligned with its expected earnings growth.
One InvestingPro Tip worth noting is that the company's short-term obligations exceed its liquid assets, which could indicate potential liquidity risks that investors may want to monitor. Moreover, the Relative Strength Index (RSI) suggests the stock is currently in overbought territory, which might signal a pullback in the near term.
For investors looking to delve deeper into Powerschool Holdings' financials and stock performance, there are additional InvestingPro Tips available. In total, there are 10 InvestingPro Tips that can provide further insights into the company's valuation, profitability, and analysts' expectations. To explore these tips and gain a more comprehensive understanding of Powerschool Holdings, visit InvestingPro. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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