Have Insiders Sold Paylocity Holding Shares Recently?

We wouldn't blame Paylocity Holding Corporation (NASDAQ:PCTY) shareholders if they were a little worried about the fact that Steven Sarowitz, the Founder & Director recently netted about US$3.7m selling shares at an average price of US$177. However, that sale only accounted for 0.3% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Paylocity Holding

In fact, the recent sale by Steven Sarowitz was the biggest sale of Paylocity Holding shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$170. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Paylocity Holding didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Paylocity Holding

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Insider Ownership Of Paylocity Holding

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Paylocity Holding insiders own 20% of the company, currently worth about US$1.8b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Paylocity Holding Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Paylocity Holding is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Paylocity Holding you should know about.

But note: Paylocity Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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