Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On May 1, a recent SEC filing unveiled that Brenda Cline, Board Member at Tyler Technologies (NYSE:TYL) made an insider sell.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Cline sold 5,000 shares of Tyler Technologies. The total transaction value is $2,294,161.
In the Thursday's morning session, Tyler Technologies's shares are currently trading at $458.53, experiencing a down of 0.0%.
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.
Tyler Technologies's Financial Performance Revenue Growth: Tyler Technologies displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 8.58%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Exploring Profitability:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 43.65%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Tyler Technologies exhibits below-average bottom-line performance with a current EPS of 1.28.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 103.98 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 9.88, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 47.88, Tyler Technologies presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
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The Importance of Insider Transactions Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
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.
Breaking Down the Significance of Transaction Codes For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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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