FOLSOM, CA - Anthony Kender, the Chief Revenue Officer of Powerschool Holdings, Inc. (NYSE:PWSC), recently sold 6,165 shares of the company's Class A Common Stock at a price of $22.23 per share. The transaction, which took place on June 5, 2024, resulted in a total sale value of approximately $137,047.
This sale was conducted to cover tax withholding obligations related to the vesting and settlement of a portion of restricted stock units that were granted to Kender on December 1, 2022. According to the footnote in the SEC filing, this sale was not a discretionary transaction by Kender.
Following the sale, Kender still owns a substantial number of shares in Powerschool Holdings, with 253,607 shares remaining under his direct ownership. The transaction was reported in a Form 4 filing with the Securities and Exchange Commission, which was signed on Kender's behalf by Eric Shander, under power of attorney, on June 6, 2024.
Powerschool Holdings, based in Folsom, California, operates within the prepackaged software industry, providing technology solutions for educational institutions. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol PWSC.
In other recent news, PowerSchool Holdings Inc. has been a focal point for investors with its consistent financial performance and potential acquisition by Bain Capital. The company reported Q1 revenue of $185.0m, slightly above consensus, and adjusted EBITDA for Q1 exceeded expectations by 6.2%. Moreover, the Annual Recurring Revenue (ARR) showed a healthy growth of 17.6% year-over-year. Analysts from RBC Capital, UBS, and others have updated their outlooks on PowerSchool, with ratings ranging from "Overweight" to "Outperform" and price targets between $22.00 and $25.00.
PowerSchool's investment in AI technology, with the launch of two AI products, has already closed deals worth approximately $400K and built a pipeline nearing $10M. However, concerns have been raised about the company's reliance on ESSR funding, accounting practices, and leadership turnover. Despite these concerns, analysts remain optimistic about PowerSchool's ability to achieve its long-term financial targets, set for 2026, based on current growth strategies. These developments are part of recent news, offering investors insights into the company's performance and potential future trajectory.
InvestingPro Insights
As Powerschool Holdings, Inc. (NYSE:PWSC) navigates the dynamic prepackaged software industry, recent market data and analysis from InvestingPro provide valuable insights into the company's financial health and stock performance. With a market capitalization of $4.56 billion, Powerschool Holdings is a significant player in its sector. Despite a challenging P/E ratio currently standing at -94.68, analysts predict the company will turn profitable this year, as indicated by one of the InvestingPro Tips.
InvestingPro data shows a robust revenue growth of 12.9% over the last twelve months as of Q1 2024, which is further supported by a quarterly revenue increase of 16.0% in Q1 2024. This growth momentum is critical for investors to consider, especially when evaluating the company's future prospects. Additionally, the company has experienced a strong return over the last month, with a 33.98% price total return, which is an important metric for short-term investors.
However, it is essential to note that the company's short-term obligations exceed its liquid assets, which could signal potential liquidity risks in the near term. This is another critical piece of information from the InvestingPro Tips that investors should factor into their decision-making process. For those seeking a deeper dive into the company's financials and stock performance, InvestingPro offers additional tips and a fair value estimate of $20.16, which is slightly below the analyst target of $26. Interested investors can unlock these insights and more by visiting https://www.investing.com/pro/PWSC and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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