Tyler Technologies President and CEO Sold $3.60M In Company Stock

LYNN MOORE JR, President and CEO at Tyler Technologies TYL, executed a substantial insider sell on August 8, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that JR executed a sale of 6,250 shares of Tyler Technologies with a total value of $3,603,086.

The latest update on Friday morning shows Tyler Technologies shares down by 0.0%, trading at $579.52.

About Tyler Technologies

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.

Financial Insights: Tyler Technologies

Positive Revenue Trend: Examining Tyler Technologies's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.28% as of 30 June, 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.

Evaluating Earnings Performance:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 43.96%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Tyler Technologies's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.59.

Debt Management: With a below-average debt-to-equity ratio of 0.21, Tyler Technologies adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 119.98 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 12.3 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 58.49, Tyler Technologies demonstrates a robust market valuation, outperforming industry benchmarks.

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

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Breaking Down the Significance of Transaction Codes

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.