Massive Insider Trade At TSS

Disclosed on November 20, Kieran Brennan, Senior Vice President at TSS TSSI, executed a substantial insider sell as per the latest SEC filing.

What Happened: Brennan's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 32,720 shares of TSS. The total transaction value is $258,013.

Tracking the Thursday's morning session, TSS shares are trading at $7.75, showing a up of 2.92%.

Unveiling the Story Behind 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.

A Deep Dive into TSS's Financials

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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 11.26%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• 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: TSS's debt-to-equity ratio is below the industry average. With a ratio of 0.51, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: TSS's P/E ratio of 43.44 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.49, 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): TSS's EV/EBITDA ratio, lower than industry averages at 18.25, indicates attractively priced shares.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Transactions Are Important

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

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.

Cracking 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 TSS's Insider Trades.

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