Form 4: Paylocity Director Steven I. Sarowitz Sells Shares Under 10b5-1 Plan

Director Steven I. Sarowitz of Paylocity Holding Corp sold a total of 19,812 shares of common stock over two days under a pre-arranged 10b5-1 trading plan.

Summary

• Steven I. Sarowitz, a director and 10% owner of Paylocity Holding Corp, sold 19,812 shares of common stock over two days.
• The sales occurred on November 25 and 26, 2024, under a pre-arranged 10b5-1 trading plan adopted on September 15, 2023.
• The shares were sold in multiple transactions at varying weighted average prices ranging from $205.94 to $211.94.
• After these transactions, Sarowitz directly owns 9,224,352 shares of Paylocity common stock.
• Additionally, Sarowitz indirectly owns 20,000 shares through the Jessica P. Sarowitz Declaration of Trust.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing detailing share sales by a director under a pre-arranged plan. It is neither particularly positive nor negative, but rather a neutral disclosure of transactions.

Risks

• The sale of a significant number of shares by a director could potentially be perceived negatively by the market.
• The 10b5-1 plan indicates a pre-determined strategy to sell shares, which may continue in the future.

Future Outlook

The 10b5-1 plan suggests that further sales may occur in the future, but the specific timing and quantity are not disclosed.

Industry Context

This is a standard SEC Form 4 filing, which is common for corporate insiders who trade company stock. The use of a 10b5-1 plan is a common practice to avoid accusations of insider trading.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a common practice among corporate insiders at publicly traded companies like Paylocity, including competitors such as Workday and ADP.
• These plans allow insiders to sell shares at pre-determined times and prices, mitigating the risk of insider trading allegations.
• The volume of shares sold by Sarowitz is not unusual for a director and 10% owner, and is similar to other insider sales seen in the tech industry.
• The weighted average prices at which the shares were sold are within the typical trading range for Paylocity stock.

Stakeholder Impact

• The share sales could have a minor negative impact on shareholder sentiment, but the pre-arranged nature of the sales should mitigate concerns.
• The sales do not directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Paylocity, Sarowitz, insider trading, 10b5-1 plan, share sale, director, equity