P10 Executives Sell Over $2.4 Million in Company Stock

Executives at P10, Inc. (NYSE: PX), a company focused on investment consulting, have recently conducted significant stock sales totaling over $2.4 million. These transactions took place on September 18 and 19, 2024, with share prices ranging from approximately $10.75 to $10.82.

On the first day, 13,262 shares of Class A Common Stock were sold at an average price of $10.75, while the following day saw a larger sale of 217,543 shares at an average price of $10.82. These transactions were carried out under a predefined trading plan compliant with Rule 10b5-1, which allows corporate insiders to establish a trading plan for selling their shares.

According to regulatory filings, the shares sold were indirectly owned by various individuals and entities, including 210 Capital, LLC, Covenant RHA Partners, L.P., CCW/LAW Holdings, LLC, RHA Investments, Inc., and directors Mr. Webb C. Clark and Mr. Alpert Robert H. The filings disclose that the shares are directly owned by 210/P10 Acquisition Partners, LLC, and due to their connections, the reporting individuals may be considered to have beneficial ownership of the securities.

It is notable that the involved executives and entities have disclaimed any beneficial ownership of the securities, aside from their financial interest in them. The filings also clarify that this should not be interpreted as an admission of beneficial ownership for the reported securities.

The reported transactions do not inherently indicate a lack of confidence in the company’s future prospects but are a typical practice among executives and substantial shareholders. Such sales are frequently monitored by shareholders and potential investors for insights into executive sentiment and broader market trends.

P10, Inc. continues to be a significant player in the investment advisory sector, and these transactions represent standard financial activities for its executives and major shareholders.

In related news, P10 has announced its acquisition of Qualitas Equity Funds SGEIC, S.A. based in Madrid, for an initial amount of $63 million. This acquisition, expected to finalize in the first quarter of 2025, is projected to increase P10’s fee-paying assets under management by approximately $1 billion and expand its global client base by over 1,300 limited partners. The firm is known for its operations in fund-of-funds, direct co-investing, and NAV financing opportunities in the European lower-middle market.

Furthermore, P10 reported a 14% revenue increase to $71 million in the second quarter of 2024, alongside substantial growth in its fee-paying assets. However, there was a slight 3% decline in Fee-Related Earnings, even as the company successfully raised and deployed $844 million in gross new assets under management.

Despite these positive developments, UBS has recently downgraded P10’s stock from Buy to Neutral due to concerns about the company’s near-term earnings potential and valuation. This downgrade is based on anticipated muted growth in fee-related earnings and the potential impact of growth initiatives on short-term margins. This situation presents a complex picture for P10, balancing strong revenue growth and strategic expansion against worries about immediate earnings and market valuation.

Overall, P10, Inc. has generated interest among investors, particularly following the recent insider stock sales. Key metrics to consider include a market capitalization of $1.22 billion and a high P/E ratio of 597.85, which indicates a substantial valuation relative to earnings. Although earnings predictions have recently been revised downward, the company maintains liquid assets that exceed its short-term obligations, indicating a strong liquidity position.

These insights may be crucial for shareholders aiming to gauge the implications of the insider stock sales on P10’s market performance.