TSS Chief Operating Officer Sold $606K In Company Stock

On November 26, a recent SEC filing unveiled that TODD KARL MARROTT, Chief Operating Officer at TSS TSSI made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, MARROTT sold 79,778 shares of TSS. The total transaction value is $606,309.

The latest update on Wednesday morning shows TSS shares up by 2.54%, trading at $9.68.

Unveiling the Story Behind 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.

Breaking Down TSS's Financial Performance

Positive Revenue Trend: Examining TSS's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 689.05% as of 30 September, 2024, showcasing a substantial increase in 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.

Navigating Financial Profits:

• 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: TSS's P/E ratio of 54.45 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.87 is lower than the industry average, implying a discounted valuation for TSS's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): TSS's EV/EBITDA ratio at 24.43 suggests potential undervaluation, falling below industry averages.

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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Understanding the Significance of Insider Transactions

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.

Transaction Codes Worth Your Attention

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.