Some Tyler Technologies, Inc. (NYSE:TYL) shareholders may be a little concerned to see that the Executive Chairman of the Board, John Marr, recently sold a substantial US$2.2m worth of stock at a price of US$364 per share. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.5%.

View our latest analysis for Tyler Technologies

Tyler Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Executive Chairman of the Board John Marr was not the only time they sold Tyler Technologies shares this year. Earlier in the year, they fetched US$473 per share in a -US$7.1m sale. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$338). So it may not shed much light on insider confidence at current levels.

Insiders in Tyler Technologies didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Tyler Technologies insiders own about US$137m worth of shares (which is 1.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Tyler Technologies Tell Us?

Insiders sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Tyler Technologies has 5 warning signs and it would be unwise to ignore them.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.