Agilysys, Inc. (NASDAQ: AGYS) has recently experienced a shift in its stock rating as Wall Street Zen downgraded its classification from “buy” to “hold” in a research report published on January 27, 2024. This adjustment follows a series of mixed evaluations from various financial analysts regarding the company’s stock performance.
Several reports have emerged from other financial institutions regarding Agilysys. Notably, Needham & Company LLC reaffirmed a “buy” rating and set a target price of $140.00 for the shares, while UBS Group reiterated a “buy” rating in a report issued on December 15, 2023. Conversely, Zacks Research lowered Agilysys from a “hold” to a “strong sell” rating on January 28, 2024. Meanwhile, Oppenheimer raised their target price from $130.00 to $140.00 while maintaining an “outperform” rating on December 4, 2023. Finally, BTIG Research began coverage with a “neutral” rating on December 16, 2023.
Currently, four equities research analysts have assigned a “buy” rating to the stock, while two have given it a “hold” rating, and one has suggested a “sell.” According to data from MarketBeat.com, Agilysys holds a consensus rating of “hold” with a target price of $145.40.
Quarterly Earnings Insights
Agilysys released its latest quarterly earnings data on January 26, 2024, reporting earnings per share (EPS) of $0.42. This figure missed the consensus estimate of $0.46 by $0.04. The company achieved a revenue of $80.39 million, surpassing analysts’ expectations of $79.07 million. Compared to the same period last year, Agilysys saw a year-over-year revenue increase of 15.6%.
The company’s net margin stood at 9.79%, and it recorded a return on equity of 10.71%. Analysts anticipate that Agilysys will post $0.80 in earnings per share for the current fiscal year.
Insider Transactions and Institutional Holdings
In recent insider trading activities, William David Wood III, the Chief Financial Officer, sold 584 shares of Agilysys on November 4, 2023, at an average price of $125.20, totaling $73,116.80. After this transaction, Wood owned 41,052 shares, valued at approximately $5,139,710.40. This sale represented a decrease of 1.40% in his holdings.
Additionally, Donald A. Colvin, a director at Agilysys, sold 6,000 shares on November 21, 2023, at an average price of $123.28, resulting in a total value of $739,680.00. Following this sale, Colvin directly owned 24,592 shares, valued at around $3,031,701.76, reflecting a 19.61% decrease in his position. Over the past three months, insiders have sold a total of 7,084 shares valued at $878,467. Currently, insiders hold 8.60% of the company’s stock.
Recent changes in institutional investor positions also highlight Agilysys’ stock activity. The New York State Teachers Retirement System increased its stake in Agilysys by 0.6% during the fourth quarter, now owning 32,340 shares valued at $3,843,000. Meanwhile, Jennison Associates LLC raised its position by 20.7%, acquiring an additional 38,007 shares to hold a total of 221,791 shares worth $26,358,000.
Other notable institutional movements include a new stake from the State of New Jersey Common Pension Fund D, valued at approximately $2,081,000, along with Keybank National Association OH, which purchased a new position worth around $244,000. Overall, institutional investors now comprise 88.00% of Agilysys’ stock.
Agilysys, based in the United States, is a publicly traded technology company specializing in software and services tailored for the hospitality industry. Its products encompass property management, point-of-sale systems, inventory and procurement solutions, workforce management tools, analytics, and mobile guest engagement services. These offerings aim to streamline operations and enhance guest experiences across sectors such as lodging, gaming, cruise, senior living, and higher education. The company provides its solutions through both cloud-based and on-premises deployments, allowing clients flexibility in choosing the operational model that best suits their needs.
