TSS (NASDAQ:TSSI) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded TSS (NASDAQ:TSSI) from a "hold" to a sell rating in a research note issued on Sunday.
• There has been significant clustered insider selling by C‑suite executives (including the CEO, CFO and COO), with insiders disposing of 126,649 shares in the last 90 days, a dynamic that may increase near‑term supply and pressure the stock.
• Analyst views are mixed — Needham initiated coverage with a buy and $16 target while MarketBeat's consensus is a Moderate Buy with an average price target of $17.17; the stock trades around $14.91 (market cap ~$414M) after reporting $0.41 EPS on $60.9M revenue and ~38% ROE last quarter.

TSS (NASDAQ:TSSI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Sunday.

Several other research firms have also recently commented on TSSI. Zacks Research upgraded shares of TSS to a "hold" rating in a research note on Tuesday, February 17th. Weiss Ratings reiterated a "hold (c-)" rating on shares of TSS in a report on Monday, December 29th. Finally, Needham & Company LLC assumed coverage on shares of TSS in a report on Monday, March 30th. They issued a "buy" rating and a $16.00 price target for the company. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, TSS currently has a consensus rating of "Moderate Buy" and an average price target of $17.17.

TSS Stock Performance

NASDAQ:TSSI opened at $14.91 on Friday. TSS has a 1-year low of $6.50 and a 1-year high of $31.94. The firm has a market capitalization of $414.05 million, a price-to-earnings ratio of 28.13 and a beta of 2.04. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.63 and a quick ratio of 1.41. The company's 50-day moving average is $11.11 and its two-hundred day moving average is $11.63.

TSS (NASDAQ:TSSI - Get Free Report) last released its earnings results on Wednesday, March 11th. The company reported $0.41 EPS for the quarter. TSS had a net margin of 6.16% and a return on equity of 38.06%. The company had revenue of $60.91 million during the quarter.

Insider Buying and Selling at TSS

In other TSS news, SVP Kieran Brennan sold 12,000 shares of the firm's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $12.27, for a total transaction of $147,240.00. Following the completion of the transaction, the senior vice president directly owned 279,137 shares in the company, valued at approximately $3,425,010.99. This trade represents a 4.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Daniel M. Chism sold 25,000 shares of the firm's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $15.00, for a total transaction of $375,000.00. Following the transaction, the chief financial officer owned 338,215 shares of the company's stock, valued at $5,073,225. This trade represents a 6.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 126,649 shares of company stock valued at $1,870,031. Insiders own 18.94% of the company's stock.

Hedge Funds Weigh In On TSS

Several hedge funds have recently added to or reduced their stakes in TSSI. Bank of America Corp DE purchased a new position in TSS during the 4th quarter valued at about $40,000. NewEdge Advisors LLC increased its holdings in TSS by 536.7% during the 1st quarter. NewEdge Advisors LLC now owns 141,686 shares of the company's stock valued at $1,112,000 after acquiring an additional 119,432 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in TSS by 40.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 60,540 shares of the company's stock valued at $475,000 after acquiring an additional 17,310 shares in the last quarter. JPMorgan Chase & Co. purchased a new position in TSS during the 2nd quarter valued at about $249,000. Finally, Legal & General Group Plc purchased a new position in TSS during the 2nd quarter valued at about $59,000.

TSS News Summary

Here are the key news stories impacting TSS this week:

• Positive Sentiment: Institutional buyers increased exposure — several funds (Invesco, NewEdge, Virtu, Aristides, Diversified Trust) added or raised stakes in TSS, which can provide demand support and signal confidence from professional investors. MarketBeat Insider Trades
• Positive Sentiment: Analyst coverage improved recently — Needham initiated coverage with a "Buy" and $16 target; consensus from coverage is a Moderate Buy with a ~ $17.17 average target, which could cap downside and attract momentum buyers. Analyst Notes
• Neutral Sentiment: Recent quarterly results (reported Mar. 11) showed $0.41 EPS on $60.9M revenue, healthy ROE (~38%) and positive margins — solid fundamentals but not enough alone to offset selling pressure. Earnings/Company Snapshot
• Neutral Sentiment: Business profile — TSS provides planning/design/engineering and maintenance for specialized facilities (data centers, trading floors, labs); revenues tied to capex cycles in tech and healthcare markets. Company Profile
• Negative Sentiment: Significant insider selling by top executives — CEO Darryll Dewan sold 50,000 shares (~$750k at ~$15) on Apr. 14; CFO Daniel Chism sold 25,000 shares (~$375k) on Apr. 14; COO Karl Marrott sold multiple tranches (including 23,636 shares on Apr. 17 and earlier sales), totaling tens of thousands of shares. Large, clustered sales by C‑suite members increase near‑term supply and are weighing on the share price. See SEC/Form 4 filings and the trade alert for details: CEO/CFO/COO filings — CEO Form 4 CFO Form 4 COO Form 4 and trade alert: InsiderTrades Alert

About TSS

TSS, Inc offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc, formerly known as Fortress International Group, Inc, is based in Columbia, United States.

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