A substantial insider sell was reported on December 2, by LYNN MOORE JR, President and CEO at Tyler Technologies TYL, based on the recent SEC filing.

What Happened: JR’s decision to sell 3,250 shares of Tyler Technologies was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $2,052,083.

At Tuesday morning, Tyler Technologies shares are down by 0.0%, trading at $625.58.

Get to Know Tyler Technologies Better

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.

A Deep Dive into Tyler Technologies’s Financials

Positive Revenue Trend: Examining Tyler Technologies’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.84% as of 30 September, 2024, showcasing a substantial increase in 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.

Analyzing Profitability Metrics:

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

• Earnings per Share (EPS): Tyler Technologies’s EPS outshines the industry average, indicating a strong bottom-line trend 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.

Valuation Analysis:

• 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 114.37.

• Price to Sales (P/S) Ratio: The current P/S ratio of 13.03 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 60.41 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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.

The Insider’s Guide to Important 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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