Tyler Technologies Inc. (NYSE: TYL): The Best-Of-Breed For Investing?

The Vanguard Group, Inc. recently announced the acquisition of new stake in Tyler Technologies Inc. (NYSE:TYL). The institutional investor has increased its shareholding in the Technology company by 0.99% to 4.54 million shares with purchase of 44308.0 shares. This fresh investment now brings its stake to 10.90% valued currently at $1.46 billion. In addition, BlackRock Fund Advisors raised its holdings by 56246.0 to 2.51 million shares. And SSgA Funds Management, Inc. has lifted its position by 0.66% or 10221.0 shares – to 1.55 million shares.

With over 0.28 million Tyler Technologies Inc. (TYL) shares trading Friday and a closing price of $316.76 on the day, the dollar volume was approximately $88.29 million. The shares have shown a negative half year performance of -6.59% and its price on 01/13/23 gained nearly 0.06%. Currently, there are 41.60M common shares owned by the public and among those 41.18M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for TYL have a consensus price objective of $420.65. The analysts have set the share’s price value over the next 12 months at a high of $500.00 and a low of $322.00. The average price target is 25.06% above its recent price level and an upside to the estimated low will see the stock gain 1.63% over that period. But an upside of 36.65% will see the stock hit the forecast high price target while median target price for the stock is $433.00.

Insiders at the company have transacted a total of 52 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 32 of these insider trades were purchases, accounting for 64,763 shares. Insider sales of the common stock occurred on 20 occasions, with total insider shares sold totaling 32,656 shares.

The top 3 mutual fund holders in Tyler Technologies Inc. are Stichting Pensioenfonds ABP, Vanguard Total Stock Market Index, and Principal Investors – Mid Cap Fun. Stichting Pensioenfonds ABP owns 1.45 million shares of the company’s stock, all valued at over $468.23 million. The company bought an additional 6914.0 shares recently to bring their total holdings to about 3.49% of the shares outstanding. Vanguard Total Stock Market Index bought 5597.0 shares to see its total holdings expand to 1.25 million shares valued at over $404.02 million and representing 3.01% of the shares outstanding. Principal Investors – Mid Cap Fun sold 11479.0 shares to bring its total holdings to over 0.99 million shares at a value of $318.78 million. Principal Investors – Mid Cap Fun now owns shares totaling to 2.37% of the shares outstanding.

Shares of Tyler Technologies Inc. (NYSE: TYL) opened at $312.26, down -$4.3 from a prior closing price of $316.56. However, the script later moved the day high at 317.32, up 0.06%. The company’s stock has a 5-day price change of 1.88% and -2.46% over the past three months. TYL shares are trading -1.75% year to date (YTD), with the 12-month market performance down to -37.16% lower. It has a 12-month low price of $281.11 and touched a high of $509.96 over the same period. TYL has an average intraday trading volume of 319.71K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.96%, -0.86%, and -10.72% respectively.

Institutional ownership of Tyler Technologies Inc. (NYSE: TYL) shares accounts for 93.00% of the company’s 41.60M shares outstanding. Mutual fund holders own 38.22%, while other institutional holders and individual stakeholders account for 56.92% and 35.94% respectively.

It has a market capitalization of $13.18B and a beta (3y monthly) value of 0.82. The stock’s trailing 12-month PE ratio is 71.44, while the earnings-per-share (ttm) stands at $4.43. The company has a PEG of 9.92 and a Quick Ratio of 1.10 with the debt-to-equity ratio at 0.42. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.22% over the week and 3.00% over the month.

Analysts forecast that Tyler Technologies Inc. (TYL) will achieve an EPS of $1.81 for the current quarter, $1.91 for the next quarter and $7.99 for 2023. The lowest estimate earnings-per-share for the quarter is $1.71 while analysts give the company a high EPS estimate of $1.99. Comparatively, EPS for the current quarter was $1.75 a year ago. Earnings per share for the fiscal year are expected to decrease by -18.50%, and 2.21% over the next financial year. EPS should grow at an annualized rate of 7.20% over the next five years, compared to 5.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Tyler Technologies Inc. (TYL) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 6 of the 19 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the TYL, a number of firms have released research notes about the stock. Goldman stated their Neutral rating for the stock in a research note on November 10, 2022, with the firm’s price target at $322. Wells Fargo coverage for the Tyler Technologies Inc. (TYL) stock in a research note released on June 07, 2022 offered a Overweight rating with a price target of $435. DA Davidson was of a view on May 26, 2022 that the stock is Buy, while Credit Suisse gave the stock Neutral rating on May 10, 2022, issuing a price target of $408. Wells Fargo on their part issued Equal Weight rating on April 25, 2022.