Revealing a significant insider sell on December 5, Mulford James Oliver III, CRO at TSS TSSI, as per the latest SEC filing.
What Happened: III's decision to sell 55,772 shares of TSS was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $621,255.
TSS shares are trading up 2.7% at $9.5 at the time of this writing on Thursday morning.
Delving into TSS's Background
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
Revenue Growth: Over the 3 months period, TSS showcased positive performance, achieving a revenue growth rate of 689.05% as of 30 September, 2024. This reflects 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.
Profitability Metrics: Unlocking Value
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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: TSS's debt-to-equity ratio is below the industry average at 0.51, reflecting a lower dependency on debt financing and a more conservative financial approach.
Financial Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 53.36 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: The current P/S ratio of 1.83 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 23.82, TSS could be considered undervalued.
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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Why Insider Transactions Are Important
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
The Insider's Guide to Important Transaction Codes
When it comes to 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 indicates 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.
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