Some Paylocity Holding Corporation (NASDAQ:PCTY) shareholders may be a little concerned to see that the Founder & Director, Steven Sarowitz, recently sold a substantial US$1.7m worth of stock at a price of US$151 per share. However, that sale only accounted for 0.1% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Paylocity Holding

Notably, that recent sale by Steven Sarowitz is the biggest insider sale of Paylocity Holding shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$145. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Paylocity Holding insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Paylocity Holding Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Paylocity Holding insiders own 20% of the company, currently worth about US$1.5b 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.

So What Do The Paylocity Holding Insider Transactions Indicate?

An insider sold Paylocity Holding shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. In terms of investment risks, we've identified 1 warning sign with Paylocity Holding and understanding this should be part of your investment process.

Of course Paylocity Holding may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.