FOLSOM, CA - Fred Studer, the Chief Marketing Officer of Powerschool Holdings, Inc. (NYSE:PWSC), sold 5,449 shares of the company's Class A Common Stock on June 5, 2024, for a total of $121,131, at a price of $22.23 per share. This transaction was disclosed in a regulatory filing with the Securities and Exchange Commission.
The sale was executed to cover tax withholding obligations related to the vesting of restricted stock units granted to Studer on September 1, 2022, according to a footnote in the filing. It was noted that this transaction was not a discretionary sale by the reporting person.
Following the sale, Studer still owns 187,441 shares of Powerschool Holdings, Inc., indicating a continued investment in the company's future. The transaction was signed off by Eric Shander, under the power of attorney, on June 6, 2024.
Powerschool Holdings, Inc., headquartered in Folsom, California, specializes in providing prepackaged software services, and is known for its commitment to transforming the education technology sector.
Investors and the market often look to insider transactions as a signal of executive confidence in the company's prospects, making SEC filings an important source of information for those following the company's stock performance.
In other recent news, PowerSchool Holdings Inc. has been a topic of discussion due to its financial results and potential acquisition by Bain Capital. The education technology company reported Q1 revenue at $185 million, slightly above consensus, and adjusted EBITDA for Q1 exceeded expectations by 6.2%. Annual Recurring Revenue (ARR) showed a healthy growth of 17.6% year-over-year, reaching $720.3m. Analysts from firms such as RBC Capital and UBS have updated their outlooks on PowerSchool, with ratings ranging from "Overweight" to "Outperform" and price targets between $22.00 and $25.00.
The company's investment in AI technology has also been promising, with two AI products launched in April, the company has already closed deals worth approximately $400K and has built a pipeline nearing $10M. However, potential risks to PowerSchool's growth include the uncertainty surrounding the acquisition talks with Bain Capital, and concerns over its reliance on ESSR funding and accounting practices. Despite these concerns, analysts remain optimistic about the company's ability to achieve its long-term financial targets, set for 2026, based on current growth strategies.
InvestingPro Insights
Amidst the news of Fred Studer's recent stock transaction, investors of Powerschool Holdings, Inc. (NYSE:PWSC) are keen to understand the underlying financial health and performance metrics of the company. According to real-time data from InvestingPro, Powerschool Holdings is currently trading at a price close to its 52-week high, with a Price % of 52 Week High at 88.91%. This suggests a strong market sentiment and a robust performance over the recent period, as reflected by a 33.98% one-month price total return as of 2024.
While the company has been experiencing notable revenue growth, with a 16.0% quarterly increase in revenue for Q1 2024 and a gross profit margin of 69.2% for the last twelve months as of Q1 2024, it is also grappling with profitability challenges. The P/E Ratio stands at -94.68, indicating that the company is not currently profitable. This is further substantiated by an InvestingPro Tip highlighting that Powerschool Holdings has not been profitable over the last twelve months.
However, there is a silver lining for potential investors, as one of the InvestingPro Tips indicates that net income is expected to grow this year. This could signal a turnaround for the company, aligning with the positive revenue trends and market performance. For those considering an investment in Powerschool Holdings, InvestingPro offers additional insights with more InvestingPro Tips available, providing a deeper analysis of the company's financials and market position. Interested readers can explore these insights and benefit from a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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