Steven I. Sarowitz, a director and ten percent owner at Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), has sold a significant portion of his holdings in the company. According to a recent filing with the Securities and Exchange Commission, Sarowitz disposed of shares valued at approximately $4.66 million on October 31, 2024.
The transactions involved the sale of multiple tranches of common stock, with prices ranging from $185.29 to $191.72 per share. Following these sales, Sarowitz now holds 9,513,560 shares directly. These transactions were conducted under an approved 10b5-1 Plan, which was adopted on September 15, 2023.
In other recent news, Paylocity Holding has been the subject of several positive developments. The company reported a robust first-quarter with a 14% revenue growth and higher-than-anticipated EBITDA margins. Following this, Paylocity revised its top-line forecast for fiscal year 2025 upwards by $22 million, a move that was well-received by market analysts. The company also completed the strategic acquisition of Airbase, a spend management platform, which is expected to enhance its product offerings and drive further growth.
Investment firms BMO (TSX:BMO) Capital, Piper Sandler, and Jefferies have all shown confidence in Paylocity's prospects, with BMO Capital and Piper Sandler raising their price targets for the company to $203 and $212 respectively. Jefferies upgraded Paylocity stock from Hold to Buy, setting a new price target of $200.00. Meanwhile, Needham has reiterated its Buy rating on Paylocity shares, noting impressive client feedback and a positive outlook for the company's continued performance.
These recent developments reflect a generally positive market sentiment towards Paylocity, underpinned by the company's strong financial performance, strategic acquisitions, and positive customer feedback. As the company continues to execute its growth strategy, investors and analysts alike will be closely monitoring its progress.
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 $10.67 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 headwinds.
Paylocity's revenue for the last twelve months stands at $1.45 billion, with a notable revenue growth of 16.87% over the same period. The company's impressive gross profit margin of 68.67% underscores its operational efficiency and pricing power in the market.
Despite Sarowitz's recent stock sale, Paylocity's share price has shown strong performance, with a 21.3% return over the past three months and a 32.01% return over the last year. The stock is currently trading near its 52-week high, with the price at 99.25% of its peak value.
It's worth noting that while the company exhibits strong financials, an InvestingPro Tip indicates that 10 analysts have revised their earnings downwards for the upcoming period. This could suggest some caution regarding near-term performance expectations.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips on Paylocity, providing a deeper dive into 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.