Shares of TSS (NASDAQ:TSSI) faced a significant downgrade on Saturday as Wall Street Zen shifted its rating from “hold” to a “strong sell.” This decision reflects growing concerns among analysts regarding the company’s financial performance and market position. The downgrade comes after TSS reported a decline in share value, with the stock plummeting by approximately 43.3%.
A range of analysts has offered varying perspectives on TSS. Singular Research initiated coverage on September 16, 2023, assigning a “buy” rating along with a price target of $20.50. In contrast, Weiss Ratings reaffirmed a “hold (c)” rating in a report released on Thursday. Currently, TSS holds a consensus rating of “Moderate Buy” along with a target price of $20.50, according to data from MarketBeat.
Recent Earnings Results and Insider Activity
TSS last published its earnings report on November 13, 2023, revealing an earnings per share (EPS) loss of ($0.06) for the quarter. The company reported a net margin of 3.43% and a return on equity of 107.01%, with revenues reaching $41.88 million.
In recent insider trading activities, Chief Operating Officer Karl Todd Marrott sold 11,100 shares of TSS on September 10, 2023, at an average price of $16.17, amounting to a total transaction value of $179,487. Post-transaction, Marrott holds 295,575 shares, valued at approximately $4,779,447.75, representing a 3.62% decrease in his ownership stake.
Additionally, Chief Financial Officer Daniel M. Chism also sold 15,000 shares on the same day for a total of $242,550. Following this sale, Chism’s remaining shares total 296,219, valued at about $4,789,861.23, reflecting a 4.82% reduction in his position. In total, insiders sold 67,925 shares of TSS stock during the last quarter, valued at $1,099,233.
Institutional Investment Trends
Changes among institutional investors have also been notable. The California State Teachers Retirement System established a new position in TSS during the second quarter, valued at $33,000. Other significant acquisitions include BNP Paribas Financial Markets, which purchased shares worth $45,000, and Ameritas Investment Partners Inc. with a new stake valued at $54,000.
Legal & General Group Plc also entered the market with a new stake worth $59,000, while Tower Research Capital LLC increased its holdings in TSS by 81.1% during the same period, bringing its total shares to 3,129 with a value of $90,000.
TSS, Inc. specializes in providing planning, design, engineering, construction management, commissioning, and maintenance services, primarily for specialized facilities such as data centers, communication rooms, and medical facilities. As the company navigates these challenges, investors will be closely monitoring its financial health and market strategies moving forward.
