President and CEO At TSS Sells $1.51M Of Stock

On November 26, a recent SEC filing unveiled that Darryll Dewan, President and CEO at TSS TSSI made an insider sell.

What Happened: Dewan's decision to sell 201,913 shares of TSS was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $1,514,240.

As of Wednesday morning, TSS shares are up by 2.54%, currently priced at $9.68.

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.

Breaking Down TSS's Financial Performance

Revenue Growth: TSS's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 689.05%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

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

• Earnings per Share (EPS): TSS's EPS is below the industry average, signaling challenges in bottom-line performance 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.

Financial Valuation Breakdown:

• 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 Price to Sales ratio is 1.87, 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): With an EV/EBITDA ratio lower than industry benchmarks at 24.43, TSS presents an attractive value opportunity.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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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.

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.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 TSS's Insider Trades.

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