TYL Stock Falls -6.3% With A 7-day Losing Spree On Insider Selling

TYL: Tyler Technologies logo
TYL
Tyler Technologies

Tyler Technologies (TYL) stock hit day 7-day losing streak, with cumulative losses over this period amounting to a -6.3%. The company market cap has crashed by about $1.3 Bil over the last 7 days, and currently stands at $19 Bil.

The stock has YTD (year-to-date) return of 4.0% compared to 0.2% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.

What Triggered The Slide?

[1] Sustained Insider Selling Pressure

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  • Director sold 500 shares on 2025-12-12
  • Insiders sold stock 38 times in the last 6 months with zero purchases
  • Impact: Increased Investor Concern, Negative Sentiment

[2] DA Davidson Price Target Cut

  • Price target lowered to $510
  • Stock entered a ‘wide and falling trend’
  • Impact: Weakened Analyst Confidence, Technical Price Decline

Opportunity or Trap?

Below is our take on valuation.

There are only a couple of things to fear in TYL stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive (For details, see Buy or Sell TYL).

But here is the real interesting point.

You are reading about this -6.3% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.

Returns vs S&P 500

The following table summarizes the return for TYL stock vs. the S&P 500 index over different periods, including the current streak:

Return Period TYL S&P 500
1D -4.0% 0.2%
7D (Current Streak) -6.3% -0.3%
1M (21D) -5.6% 0.4%
3M (63D) -12.5% 2.1%
YTD 2026 -4.0% 0.2%
2025 -21.3% 16.4%
2024 37.9% 23.3%
2023 29.7% 24.2%

Gains and Losses Streaks: S&P 500 Constituents

There are currently 7 S&P constituents with 3 days or more of consecutive gains and 111 constituents with 3 days or more of consecutive losses.
 

Consecutive Days # of Gainers # of Losers
3D 2 49
4D 2 30
5D 1 24
6D 2 2
7D or more 0 6
Total >=3 D 7 111

 
 
Key Financials for Tyler Technologies (TYL)

Last 2 Fiscal Years:

Metric FY2023 FY2024
Revenues $2.0 Bil $2.1 Bil
Operating Income $218.5 Mil $299.5 Mil
Net Income $165.9 Mil $263.0 Mil

Last 2 Fiscal Quarters:

Metric 2025 FQ2 2025 FQ3
Revenues $596.1 Mil $595.9 Mil
Operating Income $95.6 Mil $97.9 Mil
Net Income $84.6 Mil $84.4 Mil

The losing streak TYL stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.