TSS (NASDAQ:TSSI) Upgraded by Wall Street Zen to Sell Rating

Key Points

• Wall Street Zen upgraded TSS from “strong sell” to “sell,” while broader analyst sentiment remains “Moderate Buy,” with a consensus price target of $16.17. Needham retained a “Buy” rating but cut its price target from $16 to $13.
• TSS shares opened at $9.68, down 19.1%, after the company reported quarterly EPS of $0.05, missing the $0.08 consensus estimate. Revenue was $35.14 million as TSS transitioned away from lower-margin procurement revenue.
• Management highlighted growth in higher-margin services, including a 46% year-over-year increase in systems-integration revenue, while maintaining its full-year adjusted EBITDA outlook. However, insiders sold 310,000 shares worth approximately $4.92 million over the past 90 days.

TSS (NASDAQ:TSSI - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research note issued on Saturday.

TSSI has been the subject of several other research reports. Needham & Company LLC decreased their price objective on TSS from $16.00 to $13.00 and set a "buy" rating for the company in a research note on Friday. Weiss Ratings lowered shares of TSS from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, June 17th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $16.17.

TSS Stock Down 19.1%

Shares of NASDAQ TSSI opened at $9.68 on Friday. The stock has a market cap of $271.72 million, a P/E ratio of 20.17 and a beta of 2.09. The business's fifty day simple moving average is $11.31 and its 200-day simple moving average is $11.69. TSS has a 12-month low of $6.87 and a 12-month high of $21.77. The company has a current ratio of 2.18, a quick ratio of 1.99 and a debt-to-equity ratio of 0.16.

TSS (NASDAQ:TSSI - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.08 by ($0.03). TSS had a return on equity of 19.71% and a net margin of 7.44%.The company had revenue of $35.14 million for the quarter. As a group, equities analysts predict that TSS will post 0.32 EPS for the current fiscal year.

Insider Buying and Selling

In other TSS news, Director Peter H. Woodward sold 200,000 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $16.07, for a total value of $3,214,000.00. Following the completion of the sale, the director owned 983,521 shares in the company, valued at approximately $15,805,182.47. The trade was a 16.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Kieran Brennan sold 10,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $16.00, for a total value of $160,000.00. Following the completion of the sale, the senior vice president owned 271,333 shares of the company's stock, valued at approximately $4,341,328. This represents a 3.55% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 310,000 shares of company stock worth $4,922,000 in the last 90 days. 15.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On TSS

A number of institutional investors have recently modified their holdings of the business. Dupree Financial Group LLC purchased a new stake in TSS in the 4th quarter valued at $684,000. UBS Group AG grew its position in TSS by 188.1% during the 4th quarter. UBS Group AG now owns 316,456 shares of the company's stock worth $2,237,000 after purchasing an additional 206,600 shares during the last quarter. K2 Principal Fund L.P. purchased a new position in TSS during the 4th quarter worth $354,000. AXQ Capital LP acquired a new position in TSS in the fourth quarter valued at $177,000. Finally, Citizens Financial Group Inc. RI increased its stake in TSS by 8.3% in the fourth quarter. Citizens Financial Group Inc. RI now owns 39,500 shares of the company's stock valued at $279,000 after purchasing an additional 3,038 shares during the period.

More TSS News

Here are the key news stories impacting TSS this week:

• Positive Sentiment: Management highlighted a strategic shift toward higher-margin services: systems integration revenue increased 46% year over year and represented 39% of total revenue, up from 22% a year earlier. Facilities management revenue also grew 84%. TSS Reports Second Quarter 2026 Financial Results
• Positive Sentiment: TSS maintained its full-year adjusted EBITDA outlook toward the upper end of its $20 million-$22 million range. Its approximately $17 million investment in next-generation AI data-center technology is expected to be substantially ready by September and begin supporting higher systems-integration revenue in the third quarter. TSS Maintains EBITDA Outlook as Vera Rubin Buildout Nears Completion
• Neutral Sentiment: Needham lowered its price target from $16 to $13 but retained a “Buy” rating, implying continued confidence in TSS’s AI infrastructure opportunity while reflecting more cautious near-term expectations. Needham Lowers TSS Price Target
• Negative Sentiment: Second-quarter adjusted earnings were $0.05 per share, below the $0.08 consensus estimate and down from $0.06 a year earlier. Revenue totaled $35.14 million, with the overall decline reflecting TSS’s transition away from lower-margin procurement revenue. TSS Misses Second-Quarter Earnings and Revenue Estimates

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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