Insider Transaction: Darryll Dewan Sells $459K Worth Of TSS Shares

Making a noteworthy insider sell on December 4, Darryll Dewan, President and CEO at TSS TSSI, is reported in the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Dewan sold 45,000 shares of TSS. The total transaction value is $459,952.

TSS's shares are actively trading at $11.0, experiencing a up of 1.75% during Wednesday's morning session.

Discovering TSS: A Closer Look

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's Financial Performance

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

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 11.26%, suggesting potential challenges in cost control and profitability compared to its peers.

• 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: TSS's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 62.36 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.14, 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 of 28.87 exceeds industry averages, indicating a premium valuation in the market

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.

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The Impact of Insider Transactions on Investments

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

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.

Navigating the World of Insider Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.