Paylocity director Ronald V. Waters sells $94k in company stock

In a recent transaction, Ronald V. Waters (NYSE:), a director at Paylocity (NASDAQ:) Holding Corp (NASDAQ:PCTY), sold shares of the company’s common stock. The sale, which occurred on September 17, 2024, involved 600 shares at a price of $156.91 each, totaling approximately $94,146.

Paylocity Holding Corp, known for its cloud-based payroll and human capital management software solutions, has seen its shares actively traded by insiders, reflecting the ongoing financial activities of its executives and directors. The transaction by Waters is part of the normal course of business, as insiders periodically buy and sell shares in their companies for various personal financial reasons.

Following the sale, Waters still holds a significant stake in the company, with 9,060 shares remaining in his possession. This indicates a continued vested interest in the company’s success and performance.

Investors often monitor insider transactions as they can provide insights into how the company’s top executives and directors view the stock’s value and future prospects. However, it’s important to note that such sales can be motivated by a variety of factors and may not necessarily signal a change in company fundamentals.

As a director of Paylocity, Waters’ transactions are closely watched for indications of his confidence in the company’s direction and strategy. Paylocity has not made any official statements regarding the sale, and it remains part of the routine disclosures required by company insiders.

The sale was publicly disclosed in accordance with SEC regulations, ensuring transparency in the trading activities of the company’s insiders. Shareholders and potential investors can access such information to make informed decisions regarding their interest in Paylocity Holding Corp.

In other recent news, Paylocity has announced the departure of its Chief Technology Officer, Rachit Lohani, and has begun the search for a successor. This development comes amidst Paylocity’s strategic expansion, including the acquisition of Airbase, a finance and spend management solution provider. The acquisition, valued at approximately $325 million, is anticipated to contribute to Paylocity’s fiscal year 2025 revenue and expand its service offerings.

Analysts from BMO Capital Markets, Needham, and TD Cowen have maintained their positive ratings on Paylocity, showing confidence in the company’s strategic direction and growth potential. The integration of Airbase’s technology into Paylocity’s existing services is expected to enhance its market position and provide comprehensive, cloud-based human capital management and financial solutions.

In terms of financial performance, Paylocity reported a 15% increase in recurring revenue in the fourth quarter and a 17% rise for the fiscal year, with total revenue reaching $1.4 billion. These recent developments underline Paylocity’s robust fiscal performance and the confidence analysts have in the company’s future growth.

InvestingPro Insights

In light of the recent insider transaction at Paylocity Holding Corp (NASDAQ:PCTY), it’s worth noting that the company exhibits some strong financial metrics that could be of interest to investors. According to InvestingPro data, Paylocity has a market capitalization of $9.07 billion, indicating a substantial presence in its sector. The company’s revenue for the last twelve months as of Q4 2024 stands at $1.402 billion, with an impressive growth rate of 19.4%. This growth is a testament to the company’s expanding operations and market reach.

Investors might also be intrigued by Paylocity’s gross profit margin, which is reported to be 68.64% for the same period. This high margin suggests that Paylocity is efficiently managing its production costs and has a strong pricing strategy for its cloud-based solutions. Furthermore, with a P/E ratio of 44.29 and an adjusted P/E ratio of 44.44, Paylocity is trading at a valuation that reflects its earnings potential, particularly when considering near-term growth expectations.

One of the InvestingPro Tips highlights that Paylocity is trading at a high revenue valuation multiple, which aligns with the company’s strong revenue growth. Additionally, another tip points out that Paylocity holds more cash than debt on its balance sheet, which could be a sign of financial stability and prudent fiscal management.

For those interested in further insights, InvestingPro offers a range of additional tips for Paylocity, including analysis on earnings multiples and profitability predictions. There are 14 additional InvestingPro Tips available for Paylocity, which can be found at: These tips could provide valuable context for investors considering the implications of insider transactions like that of Ronald V. Waters and the overall financial health of the company.

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