Stock of the Day

September 17, 2020

Tyler Technologies (TYL)

$364.14
+$14.03 (+4.0%)
Market Cap: $14.34B

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

Tyler Technologies Bull Case

Here are some ways that investors could benefit from investing in Tyler Technologies, Inc.:

  • Wells Fargo upgraded the stock to Overweight from Equal Weight on October 12, 2026, setting a $400 price target, arguing that recent execution issues are temporary and that fears about AI disruption may be overdone, which supports the current stock price of $339.26.
  • The company reported 21.7% SaaS revenue growth, record SaaS bookings, and record second-quarter free cash flow in its Q2 2026 results, indicating strong demand for its cloud-based solutions and improved cash generation capabilities.
  • Tyler Technologies raised its 2030 financial targets at its June investor day, signaling management confidence in the company's long-term growth path and its ability to sustain revenue expansion in the public sector software market.
  • A September 15 SEC filing disclosed a Rule 10b5-1 plan to repurchase up to $260 million of stock, with more than $1.4 billion of remaining board authorization, which can be seen as supportive for shares by reducing the supply of available stock.
  • The stock crossed above its 200-day moving average of $324.16 on October 7, 2026, a technical indicator that often suggests a shift in momentum from a downtrend to a potential uptrend for investors.

Tyler Technologies Bear Case

Investors should be bearish about investing in Tyler Technologies, Inc. for these reasons:

  • Goldman Sachs downgraded the stock to Neutral from Buy on October 9, 2026, reflecting a more cautious outlook on the company's valuation or growth prospects compared to its previous bullish stance.
  • CEO H Lynn Moore Jr. sold 9,250 shares at an average price of $372.79 on August 28, 2026, and COO Jeffrey Puckett sold 8,500 shares at $356.44 on August 24, 2026, indicating that key executives are reducing their personal stakes in the company.
  • The company's P/E ratio stands at 44.99, which is significantly higher than the broader market average, suggesting that the stock is priced for high growth and may be vulnerable to any disappointment in future earnings or revenue guidance.
  • Short interest increased to 3,112,732 shares as of September 30, 2026, representing 7.69% of the float, which indicates that a notable portion of investors are betting against the stock's price appreciation.
  • The consensus price target has declined from $682.89 in October 2025 to $456.72 in September 2026, reflecting a significant reduction in analyst optimism and expected upside potential over the past year.
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