We wouldn't blame PowerSchool Holdings, Inc. (NYSE:PWSC) shareholders if they were a little worried about the fact that Hardeep Gulati, the CEO & Director recently netted about US$1.3m selling shares at an average price of US$21.09. However, that sale only accounted for 4.9% of their holding, so arguably it doesn't say much about their conviction.
PowerSchool Holdings Insider Transactions Over The Last Year
In fact, the recent sale by CEO & Director Hardeep Gulati was not their only sale of PowerSchool Holdings shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$23.11 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$20.91. So it may not tell us anything about how insiders feel about the current share price.
In the last year PowerSchool Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does PowerSchool Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.5% of PowerSchool Holdings shares, worth about US$63m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About PowerSchool Holdings Insiders?
Insiders haven't bought PowerSchool Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for PowerSchool Holdings you should know about.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.