Steven I. Sarowitz, a director and significant shareholder of Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), recently sold shares worth approximately $3,018,206. The transactions were executed on November 20, 2024, under a pre-established 10b5-1 trading plan. The shares were sold at prices ranging from $194.15 to $196.81 per share.
Following these transactions, Sarowitz retains direct ownership of 9,272,906 shares of Paylocity. Additionally, 20,000 shares are held indirectly through the Jessica P. Sarowitz Declaration of Trust.
These sales are part of routine portfolio adjustments and were carried out in compliance with SEC regulations. Investors and analysts will be monitoring these developments closely as they assess their potential impact on the company’s stock performance.
In other recent news, Paylocity Holding Corporation reported a strong first quarter for fiscal year 2025. The company's total revenue reached $363 million, marking a 14.3% year-over-year increase. This growth has been attributed to ongoing innovation and a unique value proposition in the human capital management market. In addition to this, Paylocity has raised its full-year revenue guidance following the acquisition of Airbase and the launch of its AI Assistant.
Key developments include a 14.2% increase in recurring and other revenue, and an improved adjusted gross profit at 74%. The company's adjusted EBITDA margin stood at 35.5%. Strategic advancements included the acquisition of Airbase and the launch of the Paylocity AI Assistant, both of which have been well-received in the market.
These are recent developments, with Paylocity projecting recurring and other revenue to be between $1.427 and $1.442 billion for fiscal year 2025. The company's focus continues to be on product innovation and platform integration. Despite the absence of specific bearish highlights, Paylocity's success in selling to larger businesses with 150+ employees and the anticipated support from the Airbase acquisition for further expansion upmarket are notable.
InvestingPro Insights
To provide additional context to Steven I. Sarowitz's recent share sale, let's examine some key financial metrics and insights from InvestingPro for Paylocity Holding Corp (NASDAQ:PCTY).
Paylocity's market capitalization stands at $11.45 billion, reflecting its significant presence in the payroll and human capital management software sector. The company's revenue for the last twelve months as of Q1 2025 was $1.45 billion, with a robust revenue growth of 16.87% over the same period. This growth trajectory aligns with the company's strong market position and could explain why insiders might consider portfolio rebalancing.
An InvestingPro Tip highlights that Paylocity holds more cash than debt on its balance sheet, indicating a solid financial foundation. This strong liquidity position may provide reassurance to investors in light of the director's share sale.
Another notable InvestingPro Tip points out Paylocity's impressive gross profit margins. Indeed, the company's gross profit margin for the last twelve months as of Q1 2025 stands at an impressive 68.67%. This high profitability metric suggests that Paylocity maintains strong pricing power and operational efficiency, which could be attractive to long-term investors despite insider selling activity.
It's worth noting that Paylocity's stock has shown strong performance recently, with a 15.21% price return over the past month and a 31.8% return over the last three months. This positive momentum, combined with the company's solid financials, may provide context for why a director might choose to realize some gains.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Paylocity, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.