Stock of the Day

September 17, 2020

Tyler Technologies (TYL)

$614.89
-$15.21 (-2.4%)
Market Cap: $26.46B

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

Tyler Technologies Bull Case

Here are some ways that investors could benefit from investing in Tyler Technologies, Inc.:

  • The stock has a consensus rating of "Moderate Buy" from analysts, indicating positive sentiment and potential for growth.
  • Recent upgrades from investment firms, including a target price increase from Goldman Sachs to $728.00, suggest strong future performance.
  • Tyler Technologies, Inc. has a solid market capitalization of $26.93 billion, reflecting its stability and growth potential in the public sector software market.
  • As of the latest trading session, the stock price is $629.32, which is significantly above its 1-year low of $397.80, indicating a strong recovery and investor confidence.
  • With a low debt-to-equity ratio of 0.18, the company is in a strong financial position, suggesting it can manage its debts effectively while investing in growth opportunities.

Tyler Technologies Bear Case

Investors should be bearish about investing in Tyler Technologies, Inc. for these reasons:

  • Insider selling activity has been notable, with significant shares sold by executives, which may indicate a lack of confidence in the stock's short-term performance.
  • The stock has a high price-to-earnings (P/E) ratio of 103.78, suggesting that it may be overvalued compared to its earnings, which could deter value-focused investors.
  • Despite a strong market position, the company faces competition in the public sector software space, which could impact future growth and profitability.
  • The recent trading volume of 68,383 shares is below the average volume of 239,417, indicating reduced investor interest and potential volatility.
  • With a PEG ratio of 5.01, the stock may not be a good value relative to its growth rate, suggesting that investors might not see proportional returns on their investment.

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