Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On March 11, a recent SEC filing unveiled that David Jeffrey Puckett, Chief Operating Officer at Tyler Technologies (NYSE:TYL) made an insider sell.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Puckett executed a sale of 2,609 shares of Tyler Technologies with a total value of $1,103,864.
The latest market snapshot at Tuesday morning reveals Tyler Technologies shares down by 0.0%, trading at $428.82.
Unveiling the Story Behind Tyler Technologies Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts and other local government entities. The company's three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, or CMS, and payments. The company also provides a variety of add-on modules and offers outsourced property tax assessment services.
Breaking Down Tyler Technologies's Financial Performance Revenue Growth: Tyler Technologies's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 6.35%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Navigating Financial Profits:
- Gross Margin: With a low gross margin of 44.27%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): Tyler Technologies's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.92.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 110.52, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 9.4 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 47.5 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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The Relevance of Insider Transactions Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Cracking Transaction Codes When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Tyler Technologies's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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