Powerschool holdings CPO sells over $64k in stock

In recent trading activity, Shivani Stumpf, the Chief Product Officer (CPO) of Powerschool Holdings, Inc. (NYSE:PWSC), sold a total of 2,842 shares of the company's Class A common stock. The transactions occurred on two separate days, with prices ranging narrowly around the $22.77 mark.

On September 18, Stumpf sold 1,296 shares at an average price of $22.773 per share, resulting in a total value of approximately $29,513. The following day, September 19, she sold an additional 1,546 shares for an average price of $22.77 each, totaling around $35,202. Collectively, these sales amounted to over $64,000.

The sales were made for reasons related to tax obligations and a pre-established trading plan. According to a footnote in the filing, the sale on September 18 was to cover tax withholding obligations connected with the vesting of restricted stock units granted in September 2021. It's noted that this transaction was not a discretionary sale by Stumpf. The subsequent sale on September 19 was executed in accordance with a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information.

Following these transactions, Stumpf still holds a significant number of shares in the company, with her ownership standing at 281,328 shares after the last reported sale. Powerschool Holdings, headquartered in Folsom, California, specializes in prepackaged software services and remains a key player in the technology sector.

The transactions were publicly disclosed in a Form 4 filing with the Securities and Exchange Commission, providing investors and the market with insights into insider trading activities at Powerschool Holdings.



In other recent news, PowerSchool has announced the release of two new AI products, PowerBuddy for College and Career and PowerBuddy for Custom AI, aimed at enhancing student access to college and career planning resources and streamlining communication within school districts. The company has also expanded its AI solutions to six Latin American countries, including Honduras and Mexico, through new partnerships. PowerSchool is set to be acquired by Bain Capital in a transaction valued at $5.6 billion, leading analyst firms such as Raymond James, Piper Sandler, and Jefferies to downgrade the company's stock.

The company's Q1 revenue was reported at $185.0 million, slightly above consensus, and adjusted EBITDA exceeded expectations by 6.2%. PowerSchool has been integrating AI capabilities into its offerings, closing deals worth approximately $400,000 and building a pipeline nearing $10 million. These recent developments reflect PowerSchool's commitment to enhancing educational outcomes through technology and expanding its international presence.
InvestingPro Insights


Amidst the recent insider trading activity at Powerschool Holdings, Inc. (NYSE:PWSC), investors may be seeking further clarity on the company's financial health and future prospects. According to InvestingPro data, Powerschool Holdings has a market capitalization of $4.65 billion and is trading at a high revenue valuation multiple. Despite a negative P/E ratio of -67.43, which indicates that the company has not been profitable in the last twelve months, analysts predict that the company will turn a profit this year.

The company's revenue growth remains robust, with a 12.79% increase over the last twelve months as of Q2 2024. This is complemented by a solid gross profit margin of 68.77%, reflecting the company's ability to maintain profitability on its core services and products. Additionally, Powerschool Holdings exhibits low price volatility, which could be an attractive feature for investors looking for more stable stock performance in the technology sector.

InvestingPro Tips highlight that while six analysts have revised their earnings downwards for the upcoming period, the company's net income is still expected to grow this year. This could suggest that Powerschool Holdings is on a path to recovery and potentially poised for a more favorable financial outlook. For investors interested in more detailed analyses and additional InvestingPro Tips, there are 9 more tips available on the Powerschool Holdings page at Investing.com.

These financial metrics and insights from InvestingPro may offer valuable context to investors following Shivani Stumpf's recent stock sales and considering the company's potential for future growth.

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Source: Investing.com