Lynn Moore Jr., President and CEO of Tyler Technologies Inc . (NYSE:TYL), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Moore executed a series of transactions on November 6, 2024, selling a total of 5,550 shares of common stock. The sales were made at prices ranging from $600.4986 to $623.215 per share, amounting to a total value of approximately $3.79 million.
In addition to these sales, Moore exercised stock options to acquire 6,250 shares at a price of $231.68 per share, valued at approximately $1.45 million. Following these transactions, Moore's direct ownership of Tyler Technologies stock stands at 75,000 shares. These moves come as part of Moore's ongoing management of his equity position in the company.
In other recent news, Tyler Technologies has seen strong third-quarter growth, with total revenues reaching $543.3 million, marking a 9.8% increase year-over-year. The company's Software (ETR:SOWGn) as a Service (SaaS) revenue grew by 20%, and new software bookings surged 78% to $105.6 million. The firm also signed a significant $35 million contract with the Kentucky Court of Justice.
In response to these recent developments, several firms have updated their outlook on Tyler Technologies. Loop Capital increased its price target for the company to $680, maintaining a buy rating, while Piper Sandler raised its target to $701 and Baird to $700, reflecting confidence in the company's growth and profitability.
Analysts from these firms forecast that Tyler Technologies is expected to maintain an 8-10% organic growth in top-line revenue over an extended period. The company has also updated its 2024 guidance, projecting total revenues between $2.125 billion and $2.145 billion, GAAP diluted EPS to range from $6.13 to $6.28, and a free cash flow margin between 21% and 23%.
InvestingPro Insights
Tyler Technologies Inc. (NYSE:TYL) has been experiencing strong market performance, as evidenced by its recent stock price movements and financial metrics. According to InvestingPro data, the company's stock is trading near its 52-week high, with a significant price uptick of 29.56% over the last six months. This aligns with the timing of CEO Lynn Moore Jr.'s recent stock transactions.
The company's financial health appears robust, with revenue growth of 8.04% in the last twelve months as of Q3 2024, reaching $2.08 billion. Tyler Technologies also maintains a strong gross profit margin of 43.89%, indicating efficient operations and pricing power in its market segment.
InvestingPro Tips highlight that 18 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for the company's future performance. This optimism is further supported by the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
However, investors should note that Tyler Technologies is trading at a high P/E ratio of 111.73, which may indicate that the stock is priced at a premium compared to its earnings. This is reinforced by an InvestingPro Tip pointing out that the company is trading at a high earnings multiple.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Tyler Technologies, providing a comprehensive view of the company's financial position and market standing.
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