Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY) Co-Chief Executive Officer, Steven R. Beauchamp, has sold a significant number of shares in the company, according to a recent SEC filing. On July 22, Beauchamp completed multiple transactions, selling a total of 41,442 shares of common stock, generating over $7 million in proceeds.
The sales were executed under a 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specified time. The average selling price for the shares ranged from $140.62 to $143.33, with the transactions occurring in various tranches at different prices within this range. The filing indicated that the specific number of shares sold at each price point would be provided upon request.
In addition to the sales, the filing also reported that Beauchamp exercised options to acquire 107,400 shares of Paylocity stock at a price of $24.8 per share, totaling approximately $2.66 million. This transaction is part of an employee stock option plan and represents the right to buy shares at a predetermined price.
It's worth noting that despite the sale, Beauchamp still holds a substantial amount of Paylocity stock. Following these transactions, he remains in possession of 1,745,056 shares directly, with additional indirect ownership through trusts.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it's important to consider that there could be a variety of reasons for an insider to sell shares, including personal financial planning, diversification, and others not necessarily related to the company's performance.
Paylocity, a cloud-based provider of payroll and human capital management software solutions, has not made any official statement regarding these transactions. The company continues to operate as usual, providing services that support a wide range of human resources functions for businesses across the United States.
In other recent news, Paylocity Holding Corporation has seen multiple adjustments from financial firms following its third-quarter results. The company's total revenue reached $401.3 million, an increase of 18.1% from the previous year, exceeding expectations for both revenue and adjusted EBITDA, which stood at $167.9 million. Paylocity also introduced a $500 million share repurchase program and expressed a future revenue goal of $2 billion.
TD Cowen revised its outlook for Paylocity, reducing the price target to $153 from $180 while maintaining a Buy rating. This adjustment reflects a cautious stance on the company's future growth potential, particularly concerning net client hiring and new client sales. However, despite the price target reduction, TD Cowen maintains a positive outlook on Paylocity's market position and business model.
Baird lowered its price target for Paylocity to $195 due to several factors including a slowdown in employment, but maintained an Outperform rating. Similarly, Piper Sandler reduced its price target to $194, also maintaining an Overweight rating, following the firm's revised fiscal year 2025 growth estimates.
On the other hand, KeyBanc Capital Markets raised its price target for Paylocity from $186 to $200, maintaining an Overweight rating. This adjustment was made in response to the company's strong financial performance and its shift towards improving margin expansion opportunities and overall profitability. Needham reiterated a Buy rating and a $200.00 price target for Paylocity, highlighting the company's stable demand environment and strategic shift towards increased sales force efficiency.
InvestingPro Insights
Amidst the news of Paylocity Holding Corp (NASDAQ:PCTY) Co-CEO Steven R. Beauchamp's recent stock sale, it's pertinent for investors to consider the company's financial health and market position. Paylocity's robust balance sheet is highlighted by the fact that it holds more cash than debt, according to an InvestingPro Tip. This indicates a strong financial position that could afford the company flexibility in its operations and investments. Additionally, Paylocity's net income is anticipated to grow this year, another InvestingPro Tip that suggests potential for increased shareholder value in the near future.
Delving into real-time data from InvestingPro, Paylocity's market capitalization stands at $8.02 billion USD. The company's Price-to-Earnings (P/E) ratio is currently at 40.95, reflecting investor expectations for future earnings growth, especially when considering the P/E ratio adjusted for the last twelve months as of Q3 2024 is 41.1. Moreover, Paylocity's impressive gross profit margin of nearly 69% for the same period underscores the company's efficiency in managing its production costs and pricing strategies.
For those interested in further analysis and tips, there are additional InvestingPro Tips available that provide deeper insights into Paylocity's financial metrics and investment potential. By visiting the dedicated Paylocity page on InvestingPro, investors can access these valuable resources. Don't forget to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of data and expert insights to inform your investment decisions.
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