President and CEO Of Tyler Technologies Sold $5.39M In Stock

On May 9, a recent SEC filing unveiled that LYNN MOORE JR, President and CEO at Tyler Technologies TYL made an insider sell.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that JR executed a sale of 11,250 shares of Tyler Technologies with a total value of $5,391,260.

During Friday's morning session, Tyler Technologies shares down by 0.0%, currently priced at $481.84.

Delving into Tyler Technologies's Background

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.

Tyler Technologies: Financial Performance Dissected

Positive Revenue Trend: Examining Tyler Technologies's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.58% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: With a low gross margin of 43.65%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Tyler Technologies's EPS reflects a decline, falling below the industry average with a current EPS of 1.28.

Debt Management: Tyler Technologies's debt-to-equity ratio is below the industry average. With a ratio of 0.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 109.26 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 10.38, 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): Tyler Technologies's EV/EBITDA ratio, lower than industry averages at 50.26, indicates attractively priced shares.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Key in Investment Decisions

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

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Tyler Technologies's Insider Trades.

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