A substantial insider sell was reported on December 18, by Peter Woodward, Board Member at TSS TSSI, based on the recent SEC filing.
What Happened: Woodward's decision to sell 50,000 shares of TSS was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $453,685.
Tracking the Wednesday's morning session, TSS shares are trading at $9.45, showing a up of 1.18%.
All You Need to Know About TSS
TSS Inc provides various services for planning, design, development, and maintenance of mission-critical facilities and information infrastructure, as well as integration services. Its services consist of technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement services. The activities are organized into two segments: facilities, and systems integration. It generates the majority of its revenue from Systems integration services. It generates revenue from the United States.
TSS: Financial Performance Dissected
Positive Revenue Trend: Examining TSS's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 689.05% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Holistic Profitability Examination:
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Gross Margin: The company shows a low gross margin of 11.26%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): TSS's EPS is below the industry average. The company faced challenges with a current EPS of 0.12. This suggests a potential decline in earnings.
Debt Management: With a below-average debt-to-equity ratio of 0.51, TSS adopts a prudent financial strategy, indicating a balanced approach to debt management.
Evaluating Valuation:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 53.88 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.85 is lower than the industry average, implying a discounted valuation for TSS's stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 24.11 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Delving Into 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.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Unlocking the Meaning of Transaction Codes
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 TSS's Insider Trades.
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