SCHAUMBURG, IL—Steven Sarowitz, a director and significant shareholder of Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), recently sold a substantial amount of company stock. According to a filing submitted to the Securities and Exchange Commission, Sarowitz sold a total of 13,212 shares on November 12, 2024, generating approximately $2.8 million. The shares were sold at prices ranging from $211.51 to $213.12 per share.
Following these transactions, Sarowitz retains direct ownership of 9,349,785 shares of Paylocity. Additionally, he holds 20,000 shares indirectly through the Jessica P. Sarowitz Declaration of Trust. The transactions were conducted under a pre-established 10b5-1 trading plan, which was adopted on September 15, 2023.
Paylocity, based in Schaumburg, Illinois, specializes in providing cloud-based payroll and human capital management software solutions.
In other recent news, Paylocity Holding reported a robust first-quarter performance with a 14% growth in revenue and higher-than-anticipated EBITDA margins. Following these impressive results, the company revised its top-line forecast for fiscal year 2025 upwards by $22 million. In addition to its strong financial performance, Paylocity recently completed the acquisition of Airbase, a spend management platform, which is expected to enhance the company's product offerings and drive further growth.
Investment firms have responded positively to these developments. Needham reaffirmed its Buy rating on Paylocity shares, citing positive feedback from customers and the company's competitive pricing. BMO Capital and Piper Sandler raised their price targets for Paylocity to $203 and $212, respectively, maintaining their positive ratings. Jefferies also upgraded Paylocity's stock from Hold to Buy, setting a new price target of $200.
These upgrades reflect analysts' confidence in Paylocity's strong operational capabilities and promising future prospects. Furthermore, Paylocity's effective margin leveraging strategy has been commended, particularly in anticipation of a lower interest rate environment. These are the recent developments for Paylocity Holding.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Paylocity's financial position and market performance, providing context to Steven Sarowitz's stock sale. The company's market capitalization stands at $11.48 billion, reflecting its significant presence in the cloud-based payroll and human capital management software sector.
Paylocity's financial metrics reveal a company with strong growth and profitability. The company boasts an impressive gross profit margin of 68.67% for the last twelve months as of Q1 2023, underscoring its ability to maintain healthy margins in a competitive industry. This aligns with one of the InvestingPro Tips, which highlights Paylocity's "impressive gross profit margins."
Furthermore, Paylocity's revenue growth of 16.87% over the same period demonstrates the company's continued expansion and market penetration. This growth, coupled with a robust EBITDA growth of 41.84%, suggests that Paylocity is effectively scaling its operations and improving profitability.
However, investors should note that Paylocity is trading at a relatively high P/E ratio of 52.53, which may indicate that the stock is priced at a premium compared to its earnings. This observation is supported by another InvestingPro Tip, which states that Paylocity is "trading at a high earnings multiple."
For those seeking a more comprehensive analysis, InvestingPro offers 15 additional tips on Paylocity, providing deeper insights into the company's financial health and market position.
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