Steven I. Sarowitz, a director and 10% owner at Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), recently executed a series of stock sales amounting to approximately $3.7 million. The transactions, conducted on November 5, 2024, involved the sale of 18,007 shares of common stock at prices ranging from $191.85 to $197.08 per share.
Following these sales, Sarowitz holds 9,453,464 shares directly. Additionally, he maintains indirect ownership of 20,000 shares through the Jessica P. Sarowitz Declaration of Trust. The sales were part of a pre-established 10b5-1 trading plan, adopted on September 15, 2023.
In other recent news, Paylocity Holding has reported robust first-quarter results, with a 14% revenue growth and higher-than-anticipated EBITDA margins. Following these results, Paylocity revised its top-line forecast for fiscal year 2025 upwards by $22 million. The acquisition of Airbase, a spend management platform, is also expected to enhance Paylocity's product offerings and potentially drive further growth.
Several investment firms have shown confidence in Paylocity's future. Needham reaffirmed its Buy rating on Paylocity, noting positive client feedback and competitive pricing. BMO Capital and Piper Sandler 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.
These developments reflect the company's strong operational capabilities and effective margin leveraging strategy. However, it's important to remember that these are just recent developments and future performance can be influenced by a variety of factors.
InvestingPro Insights
As Steven I. Sarowitz reduces his stake in Paylocity Holding Corp (NASDAQ:PCTY), investors might be curious about the company's current financial standing and market position. According to InvestingPro data, Paylocity boasts a market capitalization of $11.76 billion, reflecting its significant presence in the payroll and human capital management software sector.
The company's financial health appears robust, with InvestingPro Tips highlighting that Paylocity holds more cash than debt on its balance sheet. This strong liquidity position could provide the company with financial flexibility for future growth initiatives or to weather potential economic uncertainties.
Paylocity's impressive gross profit margins, another InvestingPro Tip, underscore the company's efficiency in delivering its services. For the last twelve months as of Q1 2025, the gross profit margin stood at a healthy 68.67%, indicating strong pricing power and cost management.
It's worth noting that Paylocity's stock has shown significant momentum recently. The company has experienced a strong return over the last month, with a 28.8% price total return, and an even more impressive 40.37% return over the last three months. This upward trend has brought the stock price to 98.9% of its 52-week high, suggesting investor confidence in the company's prospects.
However, potential investors should be aware that 10 analysts have revised their earnings downwards for the upcoming period, according to InvestingPro Tips. This could indicate some caution regarding short-term performance expectations.
For those interested in a more comprehensive analysis, InvestingPro offers 21 additional tips for Paylocity, providing a deeper understanding of the company's financial health and market position.
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