Independent Director Of Paylocity Holding Sold 100% Of Their Shares

We wouldn't blame Paylocity Holding Corporation (NASDAQ:PCTY) shareholders if they were a little worried about the fact that Jeffrey Diehl, the Independent Director recently netted about US$5.5m selling shares at an average price of US$210. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

Check out our latest analysis for Paylocity Holding

The Last 12 Months Of Insider Transactions At Paylocity Holding

Notably, that recent sale by Jeffrey Diehl 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$208. 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.

In the last year Paylocity Holding insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Paylocity Holding Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Paylocity Holding insiders own 20% of the company, worth about US$2.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Paylocity Holding Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Paylocity Holding is profitable and growing, we're not too worried by this. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paylocity Holding. Case in point: We've spotted 1 warning sign for Paylocity Holding you should be aware of.

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.

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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.