We wouldn’t blame Tyler Technologies, Inc. (NYSE:TYL) shareholders if they were a little worried about the fact that John Marr, the Executive Chairman of the Board recently netted about US$2.8m selling shares at an average price of US$284. However, that sale only accounted for 3.7% of their holding, so arguably it doesn’t say much about their conviction.
The Last 12 Months Of Insider Transactions At Tyler Technologies
Notably, that recent sale by Executive Chairman of the Board John Marr was not the only time they sold Tyler Technologies shares this year. They previously made an even bigger sale of -US$4.7m worth of shares at a price of US$256 per share. That means that an insider was selling shares at slightly below the current price (US$285). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 6.5% of John Marr’s holding.
In the last twelve months insiders netted US$11m for 44417 shares sold. Tyler Technologies insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tyler Technologies insiders own about US$181m worth of shares (which is 1.6% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Tyler Technologies Insiders?
An insider hasn’t bought Tyler Technologies stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Tyler Technologies.
But note: Tyler Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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