Trade-Ideas LLC identified

Tyler Technologies

(

TYL

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tyler Technologies as such a stock due to the following factors:

  • TYL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.6 million.
  • TYL has traded 312,601 shares today.
  • TYL is trading at 2.64 times the normal volume for the stock at this time of day.
  • TYL is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on TYL:

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector with a focus on local governments in the United States and internationally. TYL has a PE ratio of 63. Currently there are 8 analysts that rate Tyler Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Tyler Technologies has been 322,600 shares per day over the past 30 days. Tyler has a market cap of $5.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.07 and a short float of 9.2% with 5.57 days to cover. Shares are down 11.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tyler Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 32.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 2022.19% to $40.27 million when compared to the same quarter last year. In addition, TYLER TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of 21.84%.
  • The gross profit margin for TYLER TECHNOLOGIES INC is rather high; currently it is at 50.72%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.52% trails the industry average.
  • TYLER TECHNOLOGIES INC's earnings per share declined by 8.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TYLER TECHNOLOGIES INC increased its bottom line by earning $1.78 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($3.41 versus $1.78).
  • TYL's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.70 is somewhat weak and could be cause for future problems.

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