ROUND ROCK, Texas—Karl Todd Marrott, the Chief Operating Officer of TSS, Inc. (NASDAQ:TSSI), executed significant stock sales recently, according to a filing with the Securities and Exchange Commission dated November 26, 2024.
Marrott sold a total of 79,778 shares of TSS, Inc. common stock over two days. On November 22, he sold 50,000 shares at a weighted average price of $7.3757, with transaction prices ranging from $7.25 to $7.4350. Following this, on November 25, he sold an additional 29,778 shares at a weighted average price of $7.9765, with prices ranging from $7.90 to $8.10. The total value of these transactions amounted to $606,309.
After these sales, Marrott holds 86,368 shares of TSS, Inc. common stock directly.
In other recent news, TSS, Inc. has reported a significant year-over-year revenue increase in its third quarter of 2024, reaching a total of $70.1 million, a 689% rise. The company's net income also saw a substantial 12-fold increase, while diluted earnings per share jumped from $0.01 to $0.10. The primary driver of this exceptional growth was the procurement segment, which reported revenues of $60.5 million, a significant increase from $5.4 million the previous year.
TSS, Inc. also announced strategic operational improvements and new partnerships, along with an uplisting to the NASDAQ Capital Market and plans for a new facility to support its expanding AI infrastructure services. However, the company anticipates slightly lower profitability in Q4 2024 due to a smaller pipeline of procurement deals.
Despite this, TSS, Inc. remains optimistic about its future performance, planning to invest between $25 million to $30 million in a new operational facility. These recent developments underline the company's commitment to growth and investor accessibility.
InvestingPro Insights
The recent stock sales by TSS, Inc.'s COO Karl Todd Marrott come at a time when the company's stock has shown remarkable performance. According to InvestingPro data, TSS has experienced a staggering 3396.3% year-to-date price total return as of the latest available data. This exceptional growth is further emphasized by the company's 376.77% price total return over the past six months.
InvestingPro Tips highlight that TSS is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.12 for the last twelve months as of Q3 2024. This suggests that the stock may be undervalued compared to its growth prospects. Additionally, the company's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors.
However, it's worth noting that TSS suffers from weak gross profit margins, with InvestingPro data showing a gross profit margin of 15.02% for the last twelve months as of Q3 2024. This factor may have influenced Marrott's decision to sell a portion of his holdings.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for TSS, providing a deeper understanding of the company's financial health and market position.
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