LYNN MOORE JR, President and CEO at Tyler Technologies TYL, reported an insider sell on November 12, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that JR executed a sale of 8,750 shares of Tyler Technologies with a total value of $5,451,400.

The latest update on Wednesday morning shows Tyler Technologies shares up by 0.13%, trading at $619.94.

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’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 9.84%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 43.7%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Tyler Technologies’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.78.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.2.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Tyler Technologies’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 113.18.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 12.9, 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): The company’s EV/EBITDA ratio of 59.79 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.