Schaumburg, IL - Steven I. Sarowitz, a director and significant shareholder of Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), sold a substantial amount of company stock, according to a recent SEC filing. On November 14, Sarowitz sold a total of 7,798 shares of Paylocity common stock, generating proceeds of approximately $1.62 million. The shares were sold at prices ranging from $205.68 to $211.35 per share.
Following these transactions, Sarowitz maintains direct ownership of 9,329,480 shares of Paylocity stock. Additionally, he holds an indirect interest of 20,000 shares through the Jessica P. Sarowitz Declaration of Trust. The sales were conducted under an approved 10b5-1 plan, which allows insiders to set up a predetermined plan to sell stocks at a future date.
In other recent news, Paylocity Holding has been in the spotlight due to a series of positive developments. The company's first-quarter results revealed a 14% revenue growth and higher-than-anticipated EBITDA margins, a performance that exceeded market expectations. Following this robust financial performance, Paylocity revised its top-line forecast for fiscal year 2025 upwards by $22 million.
The company's strong performance has prompted a series of analyst upgrades. Needham reiterated its Buy rating on Paylocity, citing positive client feedback and robust expansion in its modules. BMO Capital and Piper Sandler also raised their price targets for Paylocity to $203 and $212 respectively, maintaining their positive ratings. Jefferies upgraded Paylocity stock from Hold to Buy, setting a new price target of $200.00.
In addition to strong financial results, Paylocity has made strategic moves to enhance its offerings. The acquisition of Airbase, a spend management platform, is expected to drive further growth and competitiveness. These recent developments underscore Paylocity's operational strength and potential for future growth.
InvestingPro Insights
While Steven I. Sarowitz's recent stock sale might raise eyebrows, it's essential to consider Paylocity's broader financial picture. According to InvestingPro data, Paylocity boasts a market capitalization of $10.93 billion and has demonstrated strong revenue growth of 16.87% over the last twelve months. This growth aligns with the company's impressive gross profit margin of 68.67%, reflecting efficient operations and potentially justifying its high valuation multiples.
InvestingPro Tips highlight that Paylocity holds more cash than debt on its balance sheet, suggesting financial stability. This could be reassuring for investors concerned about the insider sale. Additionally, the company has shown a strong return over the last three months, with a price total return of 28.63%, indicating positive market sentiment despite the director's stock disposition.
However, it's worth noting that 10 analysts have revised their earnings downwards for the upcoming period, which could signal some caution. For a more comprehensive analysis, InvestingPro offers 13 additional tips that could provide deeper insights into Paylocity's financial health and market position.
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