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

Director Steven I. Sarowitz of Paylocity Holding Corp sold shares of common stock on December 30 and 31, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Steven I. Sarowitz, a director of Paylocity Holding Corp, sold shares of the company's common stock on December 30 and 31, 2024.
• The sales were executed under a 10b5-1 trading plan adopted on September 15, 2023.
• On December 30, 2024, 2,600 shares were sold at a weighted average price of $200.14, with individual prices ranging from $200.00 to $200.31.
• On December 31, 2024, two transactions occurred: 1,812 shares were sold at a weighted average price of $200.35 (ranging from $200.00 to $200.97), and 200 shares were sold at $201.65.
• Following these transactions, Steven I. Sarowitz directly owns 8,330,335 shares of Paylocity Holding Corp.
• Sarowitz also indirectly owns 520,000 shares through the Jessica P. Sarowitz Declaration of Trust.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports transactions under a pre-existing plan, with no indication of positive or negative implications for the company.

Industry Context

Insider sales are a common occurrence, and sales under a 10b5-1 plan are generally viewed as less impactful since they are pre-planned. Investors often monitor insider transactions for signals about a company's prospects, but pre-scheduled sales are less informative.

Comparison to Industry Standards

• Comparing Sarowitz's transactions to other directors in similar SaaS companies, the volume of shares sold is relatively small compared to his overall holdings.
• Other companies such as Workday and Salesforce also see regular insider selling, often through similar 10b5-1 plans.
• The weighted average prices obtained by Sarowitz are within the typical trading range for PCTY during the specified dates, indicating fair market value.

Stakeholder Impact

• The transactions are unlikely to have a significant impact on stakeholders, as they are part of a pre-planned trading strategy and represent a small portion of the director's holdings.

Key Dates