Brennan Kieran, the Senior Vice President of TSS Inc. (NASDAQ:TSSI), recently sold 32,720 shares of the company's common stock. The shares were sold at a weighted average price of $7.8855, amounting to a total transaction value of $258,013. The sale took place on November 19, 2024, and followed multiple transactions with share prices ranging from $7.70 to $8.05. Post-sale, Kieran retains ownership of 452,600 shares in TSS Inc.
In other recent news, TSS, Inc. disclosed a significant upswing in its Q3 financial results, with revenues reaching $70.1 million, marking a 689% increase year-over-year. The company's net income also saw a substantial leap, with diluted earnings per share (EPS) jumping from $0.01 to $0.10. The procurement segment was a major contributor to these figures, as revenues soared to $60.5 million from $5.4 million the previous year.
In addition to these financial updates, TSS, Inc. announced several strategic operational improvements and partnerships. Notably, the company has uplisted to the NASDAQ Capital Market and has plans to invest in a new facility to augment its AI infrastructure services. A new long-term agreement to support generative AI infrastructure was also disclosed.
While the company anticipates continued demand for AI infrastructure services, it foresees slightly lower profitability in Q4 2024 due to a smaller pipeline of procurement deals. However, TSS, Inc. expects its first-half 2025 performance to align with Q2 and Q3 of 2024. Despite a decrease in gross margin to 11.3% due to an increase in lower-margin procurement activities, the company maintains a positive outlook, with a focus on expanding its service offerings in the AI technology sector.
InvestingPro Insights
The recent insider sale by Brennan Kieran comes at a time when TSS Inc. (NASDAQ:TSSI) is experiencing significant market dynamics. According to InvestingPro data, the company's stock has shown remarkable performance, with a staggering 1,959.5% price total return over the past year and a 442.57% return in the last six months. This exceptional growth is reflected in the company's revenue, which has surged by 199.3% in the last twelve months.
Despite the recent insider sale, TSS Inc. maintains a strong financial position. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, suggesting financial stability. Additionally, the company's profitability over the last twelve months is noteworthy, with an operating income of $6.47 million and an EBITDA of $6.94 million.
However, investors should be aware that TSS Inc. is trading at a high P/E ratio of 44.11, which may indicate that the stock is priced at a premium compared to its earnings. This valuation metric aligns with another InvestingPro Tip stating that the stock is trading at a high earnings multiple.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for TSS Inc., providing deeper insights into the company's financial health and market position. These tips can be particularly valuable in understanding the context of insider transactions and the company's overall trajectory.
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