TYL Stock Falls -17% In 5-day Spree On $212M Acquisition News
Tyler Technologies (TYL) – a provider of integrated public sector financial management software – hit a 5-day losing streak, with cumulative losses over this period amounting to -17%. The company’s market cap has crashed by about $3.3 Bil over the last 5 days and currently stands at $16 Bil.
The stock has YTD (year-to-date) return of 20.1% compared to 1.9% 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] Acquisition of ‘For The Record’
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- Definitive agreement for $212.5M cash purchase
- Anxiety ahead of Feb 11 earnings release
- Impact: Stock hitting new 52-week lows, Negative investor sentiment
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 -17% 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 | -1.8% | 0.5% |
| 5D (Current Streak) | -17.5% | 0.4% |
| 1M (21D) | -20.1% | 1.9% |
| 3M (63D) | -24.1% | 2.3% |
| YTD 2026 | -20.1% | 1.9% |
| 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 74 S&P constituents with 3 days or more of consecutive gains and 49 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 50 | 11 |
| 4D | 19 | 15 |
| 5D | 2 | 11 |
| 6D | 3 | 6 |
| 7D or more | 0 | 6 |
| Total >=3 D | 74 | 49 |
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.