JOHN MARR JR Takes Money Off The Table, Sells $2.66M In Tyler Technologies Stock

It was reported on December 6, that JOHN MARR JR, Executive Chairman at Tyler Technologies TYL executed a significant insider sell, according to an SEC filing.

What Happened: JR opted to sell 6,500 shares of Tyler Technologies, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $2,658,916.

The latest market snapshot at Thursday morning reveals Tyler Technologies shares down by 0.0%, trading at $404.25.

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.

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 4.54% as of 30 September, 2023, showcasing a substantial increase in 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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 45.52%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Tyler Technologies's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.12.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Tyler Technologies's P/E ratio of 109.26 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 8.96 is lower than the industry average, implying a discounted valuation for Tyler Technologies's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tyler Technologies's EV/EBITDA ratio, lower than industry averages at 45.61, indicates attractively priced shares.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When analyzing 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 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.