Darryll E. Dewan, the President and CEO of TSS, Inc. (NASDAQ:TSSI), has recently sold a significant portion of his holdings in the company. The sale comes amid TSS's remarkable year, with the stock delivering an impressive 3,289% return year-to-date and currently trading at $9.15, near its 52-week high of $12.99. According to a Form 4 filing with the Securities and Exchange Commission, Dewan sold 90,000 shares of common stock over two transactions. The sales occurred on December 6 and December 10, at weighted average prices of $10.2338 and $9.2265 per share, respectively. The total value of these transactions amounted to $870,677. InvestingPro analysis shows TSS maintains strong financial health with a "GREAT" overall score, offering subscribers access to 14 additional exclusive ProTips.
Following these sales, Dewan holds 340,914 shares directly, with an additional 5,000 shares owned indirectly by his spouse. The transactions reflect Dewan's ongoing management of his personal holdings in the company, which currently has a market capitalization of $233 million.
In other recent news, TSS, Inc. has reported an impressive surge in its third-quarter revenue and earnings per share (EPS) growth. The company's total revenues reached $70.1 million, marking a 689% increase, and net income experienced a twelve-fold rise. The EPS jumped from $0.01 to $0.10. This substantial growth is largely due to the company's procurement segment, which saw revenues rise to $60.5 million from $5.4 million the previous year.
Other significant developments include TSS's strategic operational improvements and partnerships, its uplisting to the NASDAQ Capital Market, and plans for a new facility to support its expanding AI infrastructure services. Despite a decrease in gross margin to 11.3% due to a higher proportion of lower-margin procurement services, the company remains debt-free and generated $36.9 million in cash flow from operations in the first nine months of 2024.
Recent analyst notes indicate a bullish outlook for TSS, highlighting strong growth across all service offerings, particularly in procurement and systems integration. However, they also noted potential challenges in power availability and NVIDIA (NASDAQ:NVDA) chip supply. Despite these potential hurdles, TSS's management expressed confidence in adapting to market demands and potential tenfold growth in capacity.
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