Insider Unloading: TODD KARL MARROTT Sells $375K Worth Of TSS Shares

TODD KARL MARROTT, Chief Operating Officer at TSS TSSI, reported an insider sell on November 20, according to a new SEC filing.

What Happened: MARROTT's decision to sell 46,222 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 $375,905.

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

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.

Unraveling the Financial Story of TSS

Revenue Growth: TSS's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 689.05%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 11.26%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): TSS's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.12.

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:

• Price to Earnings (P/E) Ratio: The P/E ratio of 43.44 is lower than the industry average, implying a discounted valuation for TSS's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.49, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 18.25 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 TSS's Insider Trades.

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