Some PowerSchool Holdings, Inc. (NYSE:PWSC) shareholders may be a little concerned to see that the CEO & Director, Hardeep Gulati, recently sold a substantial US$2.0m worth of stock at a price of US$22.70 per share. However, that sale only accounted for 6.6% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for PowerSchool Holdings

The Last 12 Months Of Insider Transactions At PowerSchool Holdings

In fact, the recent sale by Hardeep Gulati was the biggest sale of PowerSchool Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$23.68, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 6.6% of Hardeep Gulati's holding.

PowerSchool Holdings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.5% of PowerSchool Holdings shares, worth about US$72m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The PowerSchool Holdings Insider Transactions Indicate?

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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for PowerSchool Holdings you should be aware of.

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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.