Karl Todd Marrott, the Chief Operating Officer of TSS, Inc. (NASDAQ:TSSI), has recently sold 46,222 shares of the company's common stock. The shares were sold at a weighted average price of $8.1326, resulting in a total transaction value of approximately $375,905. Following this transaction, Marrott retains ownership of 166,146 shares in TSS, Inc. The sale was executed on November 19, 2024, according to a Form 4 filing with the Securities and Exchange Commission.
In other recent news, TSS, Inc. has reported a significant increase in its Q3 revenues, reaching $70.1 million, a 689% year-over-year rise, alongside a substantial uptick in net income. The company's diluted earnings per share (EPS) also saw a notable leap from $0.01 to $0.10. This growth is largely credited to the procurement segment, which experienced a dramatic increase in revenues, going from $5.4 million the previous year to $60.5 million.
TSS also announced strategic operational improvements and partnerships, as well as plans for a new facility to support its expanding AI infrastructure services. The company has been uplisted to the NASDAQ Capital Market and has appointed Michael Fahy as an Independent (LON:IOG) Director. Despite a decrease in gross margin to 11.3%, due to a higher proportion of lower-margin procurement services, the company anticipates continued demand for AI infrastructure services.
Looking forward, TSS expects slightly lower profitability in Q4 2024 due to a smaller pipeline of procurement deals. However, the company's first-half 2025 performance is forecasted to align with Q2 and Q3 of 2024. As part of its growth strategy, TSS plans to invest between $25 million and $30 million in a new operational facility. These are some of the recent developments shaping the trajectory of TSS, Inc.
InvestingPro Insights
The recent stock sale by TSS, Inc.'s COO Karl Todd Marrott comes at a time when the company's financial metrics paint an intriguing picture for investors. According to InvestingPro data, TSS, Inc. has experienced remarkable growth, with a staggering revenue growth of 199.3% over the last twelve months as of Q3 2024. This impressive top-line expansion is further emphasized by the company's quarterly revenue growth of 689.05% in Q3 2024.
Despite the robust growth, TSS, Inc. is trading at a P/E ratio of 44.11, which might be considered high by some investors. However, an InvestingPro Tip suggests that the stock is actually trading at a low P/E ratio relative to its near-term earnings growth, as indicated by a PEG ratio of 0.11. This could imply that the stock is potentially undervalued considering its growth prospects.
Another noteworthy InvestingPro Tip reveals that TSS, Inc. holds more cash than debt on its balance sheet, which is often seen as a positive indicator of financial health and flexibility. This strong financial position could provide the company with ample resources to fuel further growth or navigate potential market challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for TSS, Inc., providing a deeper understanding of the company's financial situation and market position.
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