Agilysys (NASDAQ:AGYS) Shares Gap Down on Disappointing Earnings

Agilysys, Inc. (NASDAQ:AGYS - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $116.94, but opened at $100.45. Agilysys shares last traded at $107.01, with a volume of 211,324 shares.

The software maker reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.03). The firm had revenue of $76.68 million during the quarter, compared to analysts' expectations of $74.42 million. Agilysys had a return on equity of 11.24% and a net margin of 8.43%. The company's revenue for the quarter was up 20.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.30 earnings per share.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Oppenheimer dropped their price objective on Agilysys from $135.00 to $90.00 and set an "outperform" rating on the stock in a report on Wednesday, April 9th. Northland Securities set a $152.00 price target on Agilysys in a research note on Tuesday, May 20th. Needham & Company LLC reaffirmed a "buy" rating and set a $105.00 price objective (up from $100.00) on shares of Agilysys in a research report on Tuesday, May 20th. Finally, Cantor Fitzgerald assumed coverage on Agilysys in a research report on Tuesday, June 3rd. They set an "overweight" rating and a $125.00 price target for the company. One research analyst has rated the stock with a hold rating and six have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $116.57.

Insiders Place Their Bets

In other Agilysys news, SVP Kyle C. Badger sold 326 shares of Agilysys stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $113.39, for a total transaction of $36,965.14. Following the sale, the senior vice president directly owned 114,791 shares of the company's stock, valued at approximately $13,016,151.49. The trade was a 0.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO William David Wood III sold 321 shares of Agilysys stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $113.39, for a total value of $36,398.19. Following the sale, the chief financial officer directly owned 47,288 shares in the company, valued at $5,361,986.32. The trade was a 0.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,405 shares of company stock valued at $158,033. Company insiders own 19.30% of the company's stock.

Hedge Funds Weigh In On Agilysys

Large investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in Agilysys by 0.8% in the first quarter. Vanguard Group Inc. now owns 2,228,018 shares of the software maker's stock valued at $161,620,000 after buying an additional 18,744 shares during the period. Lord Abbett & CO. LLC lifted its stake in Agilysys by 10.3% in the 4th quarter. Lord Abbett & CO. LLC now owns 1,167,685 shares of the software maker's stock worth $153,796,000 after purchasing an additional 108,827 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Agilysys during the 1st quarter valued at $80,730,000. FMR LLC grew its holdings in shares of Agilysys by 58.3% during the 4th quarter. FMR LLC now owns 800,521 shares of the software maker's stock valued at $105,437,000 after purchasing an additional 294,831 shares during the last quarter. Finally, Geneva Capital Management LLC grew its holdings in Agilysys by 14.9% in the 1st quarter. Geneva Capital Management LLC now owns 765,363 shares of the software maker's stock worth $55,519,000 after acquiring an additional 99,419 shares during the last quarter. 88.00% of the stock is currently owned by institutional investors and hedge funds.

Agilysys Price Performance

The stock has a market cap of $2.99 billion, a P/E ratio of 128.73 and a beta of 0.75. The company has a current ratio of 1.11, a quick ratio of 1.07 and a debt-to-equity ratio of 0.09. The business's 50 day moving average price is $107.79 and its two-hundred day moving average price is $93.18.

About Agilysys

Agilysys, Inc operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers software solutions fully integrated with third party hardware and operating systems; cloud applications, support, and maintenance; subscription and maintenance; and professional services.

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