Eric Ryan Shander, the President and CFO of Powerschool Holdings, Inc. (NYSE:PWSC), has sold a total of 1,600 shares of the company's Class A Common Stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on June 10th, 2024, resulted in a total sale value of $36,000.
The shares were sold at a weighted average price of $22.50, with individual transactions occurring at prices ranging from $22.50 to $22.51. Following the sale, Shander's direct ownership in the company stands at 508,150 shares of Class A Common Stock.
It is noted that the sale was executed in accordance with a Rule 10b5-1 trading plan, a tool often used by corporate insiders to sell shares over a predetermined schedule to avoid concerns about transactions based on nonpublic information.
Investors and followers of Powerschool Holdings, Inc. may request detailed information on the exact number of shares sold at each price point within the specified range from Shander, should they wish to gain a deeper understanding of the sale's breakdown.
Powerschool Holdings, Inc., headquartered in Folsom, California, operates in the prepackaged software services industry and is incorporated in Delaware. The company specializes in providing cloud-based software solutions for K-12 education.
This transaction reflects a movement in the ownership stakes of key executives within Powerschool Holdings and is a point of interest for current and potential investors monitoring the company's insider activities.
In other recent news, PowerSchool Holdings Inc. is set to be acquired by Bain Capital in a deal valued at $5.6 billion. Analyst firms including Raymond James, Piper Sandler, Jefferies, RBC (TSX:RY) Capital, Needham, and Cantor Fitzgerald have all downgraded the stock, aligning their price targets with the acquisition price of $22.80 per share. The acquisition, which is a significant development for the education technology company, will result in PowerSchool transitioning to a private entity. 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
The recent insider sale by Eric Ryan Shander, the President and CFO of Powerschool Holdings, Inc. (NYSE:PWSC), comes at a time when the company's financial metrics and market performance are drawing attention. According to InvestingPro data, Powerschool Holdings has a market capitalization of $4.55 billion and has shown a notable 12.9% revenue growth over the last twelve months as of Q1 2024. This growth is further highlighted by a quarterly revenue increase of 16.0% in Q1 2024.
Despite the optimism around revenue growth, the company's profitability metrics paint a different picture. Powerschool Holdings is trading at a high revenue valuation multiple, with a negative P/E ratio of -94.18, which has adjusted to -109.75 in the last twelve months as of Q1 2024. This suggests that investors are paying a premium for each dollar of earnings, which is not uncommon for companies in growth phases or with expected future profitability.
InvestingPro Tips indicate that analysts have mixed views on the company's outlook. While net income is expected to grow this year, 6 analysts have revised their earnings estimates downwards for the upcoming period. Additionally, the company has been trading at a high EBITDA valuation multiple, which could be a concern for value-focused investors. On a positive note, Powerschool Holdings has experienced a strong return over the last month, with a 23.14% increase in price total return.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/PWSC. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a wealth of financial information and expert analysis to guide their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.