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Tyler Technologies, Inc. (TYL), headquartered in Plano, Texas, is a leading provider of software and technology solutions for the public sector. Valued at a market cap of $24.4 billion, the company specializes in enterprise resource planning (ERP), public safety, court case management, tax and appraisal software, and digital government services, catering to local, state, and federal government agencies.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TYL perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the software application industry. With a strong focus on cloud-based solutions, data analytics, and cybersecurity, Tyler Technologies helps governments streamline operations, enhance transparency, and improve citizen services. The company has expanded through strategic acquisitions and partnerships, reinforcing its position as a market leader in government technology solutions.
However, TYL has faced struggles recently and is currently trading 13.1% below its 52-week high of $661.31, recorded on Dec. 5. Over the past three months, TYL stock dropped 4.2%, compared to the broader Nasdaq Composite’s ($NASX) fall of 9.2% over the same time frame.
Shares of TYL have climbed 37% over the past 52 weeks, outpacing $ NASX's 10.7% return over the last year. However, over the past six months, TYL shares have plunged 1.8%, lagging behind $NASX’s marginal rise.
Tyler Technology has faced volatility recently and has slipped past its 50-day and 200-moving average since early March, indicating a downtrend.
Tyler Technologies' stock surged 6% following its Q4 earnings release on Feb. 12, driven by strong financial performance. Revenue climbed 12.5% year-over-year to $541.1 million, with recurring revenue making up 85.7% of the total at $463.9 million. Non-GAAP net income rose 31.2% to $106.7 million ($2.43 per share).
Its revenue is projected to be between $2.30 billion and $2.34 billion this year, with subscription revenue expected to grow from 15% to 18%. Non-GAAP EPS is forecasted between $10.90 and $11.15, reinforcing investor confidence in Tyler Technologies' growth trajectory.
TYL’s rival, Cadence Design Systems, Inc. (CDNS) shares have trailed behind the stock, with a 2.3% fall over the past six months and a 17.2% decline over the past 52 weeks.
Wall Street analysts are bullish on TYL’s prospects. The stock has a consensus “Strong Buy” rating from the 16 analysts covering it, and the mean price target of $708.12 suggests a potential upside of 23.3% from current price levels.
