Jeffrey T. Diehl, a director at Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), has recently sold shares in the company, according to a regulatory filing. On November 14, Diehl disposed of a substantial number of shares, with the total sale valued at approximately $3.02 million. The shares were sold at prices ranging from $205.66 to $207.75 per share.
The transactions were conducted through various funds affiliated with Adams Street Partners, LLC, where Diehl is a partner. These include the Adams Street 2006, 2007, 2008, 2009, 2010, 2011, and 2012 Direct Funds, as well as the Adams Street Co-Investment Fund II. Diehl's role in these transactions was indirect, acting on behalf of the funds.
Following these transactions, Diehl maintains ownership of a significant number of shares in Paylocity, with various funds holding differing amounts post-sale. The sales were executed as part of routine trading activities and represent a portion of Diehl's holdings in the company.
In other recent news, Paylocity Holding has been the subject of positive attention following robust first-quarter results, which included a 14% revenue growth and higher-than-anticipated EBITDA margins. The company also revised its top-line forecast for fiscal year 2025 upwards by $22 million. This strong performance has led to several analyst upgrades. Needham reaffirmed its Buy rating, citing positive reception among Paylocity's customer base. BMO Capital and Piper Sandler raised their price targets to $203 and $212 respectively, while Jefferies upgraded Paylocity stock from Hold to Buy.
The acquisition of Airbase, a spend management platform, is expected to enhance Paylocity's product offerings and potentially drive further growth. Analysts see this as a strategic move that could unlock additional market opportunities. Paylocity's effective margin leveraging strategy has also been commended, particularly in the current market climate anticipating lower interest rates. These recent developments contribute to a positive outlook for Paylocity.
InvestingPro Insights
As Jeffrey T. Diehl, a director at Paylocity Holding Corp (NASDAQ:PCTY), executes a significant share sale, it's crucial to examine the company's current financial position and market performance. According to InvestingPro data, Paylocity boasts a market capitalization of $10.93 billion, reflecting its substantial presence in the payroll and human capital management software sector.
Paylocity's financial health appears robust, with an InvestingPro Tip highlighting that the company "holds more cash than debt on its balance sheet." This strong liquidity position could provide flexibility for future growth initiatives or weathering potential economic headwinds.
The company's revenue growth remains solid, with a 16.87% increase over the last twelve months as of Q1 2025, reaching $1.45 billion. This growth is complemented by impressive gross profit margins, another key strength noted in the InvestingPro Tips.
Despite the recent insider sale, Paylocity's stock has shown strong performance, with a 28.63% price return over the past three months. This positive momentum is further supported by the company's profitability, as analysts predict Paylocity will remain profitable this year.
Investors should note that while Paylocity trades at a high P/E ratio of 49.55, it's also trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential value for long-term investors. The company's PEG ratio of 0.95 further supports this view.
For those seeking a more comprehensive analysis, InvestingPro offers 15 additional tips on Paylocity, providing deeper insights into the company's financial health and market position.
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