Agilysys (NASDAQ:AGYS) Given New $145.00 Price Target at Needham & Company LLC

Key Points

• Needham raised Agilysys’s price target from $135 to $145 and maintained a “buy” rating, implying 17.46% upside from the cited share price.
• Agilysys reported strong quarterly results, with revenue up 17.7% year over year to $93.36 million and adjusted EPS of $0.67, exceeding analyst estimates; management also raised full-year guidance.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and $130.60 target, but the stock’s elevated valuation and substantial insider selling—including by the CEO—could weigh on investor confidence.

Agilysys (NASDAQ:AGYS - Get Free Report) had its price target lifted by equities researchers at Needham & Company LLC from $135.00 to $145.00 in a research note issued to investors on Tuesday, Marketbeat.com reports. The brokerage currently has a "buy" rating on the software maker's stock. Needham & Company LLC's price target would suggest a potential upside of 17.46% from the company's current price.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Agilysys in a research report on Friday, October 9th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Agilysys in a research note on Tuesday, July 28th. Piper Sandler increased their target price on Agilysys from $110.00 to $120.00 and gave the company an "overweight" rating in a report on Tuesday, July 28th. Zacks Research cut Agilysys from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Finally, Oppenheimer reaffirmed an "outperform" rating on shares of Agilysys in a report on Monday, October 12th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $130.60.

Agilysys Trading Up 2.3%

Shares of NASDAQ AGYS opened at $123.45 on Tuesday. The stock has a market cap of $3.48 billion, a P/E ratio of 81.76, a PEG ratio of 3.49 and a beta of 0.37. The business's fifty day simple moving average is $108.12 and its 200-day simple moving average is $92.30. Agilysys has a 12-month low of $61.50 and a 12-month high of $145.25.

Agilysys (NASDAQ:AGYS - Get Free Report) last issued its earnings results on Monday, October 26th. The software maker reported $0.67 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.12. The firm had revenue of $93.36 million for the quarter, compared to analysts' expectations of $90.92 million. Agilysys had a net margin of 12.99% and a return on equity of 11.94%. The firm's revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the company earned $0.41 earnings per share. On average, equities analysts forecast that Agilysys will post 1.73 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Joe Youssef sold 1,002 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $114.64, for a total transaction of $114,869.28. Following the completion of the sale, the insider owned 19,045 shares in the company, valued at $2,183,318.80. This represents a 5.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Ramesh Srinivasan sold 106,205 shares of the firm's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $106.62, for a total transaction of $11,323,577.10. Following the completion of the sale, the chief executive officer owned 635,044 shares of the company's stock, valued at $67,708,391.28. This trade represents a 14.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 212,812 shares of company stock worth $23,046,675. Insiders own 8.70% of the company's stock.

Institutional Investors Weigh In On Agilysys

A number of hedge funds have recently added to or reduced their stakes in the company. Park Avenue Securities LLC raised its stake in shares of Agilysys by 39.6% during the 3rd quarter. Park Avenue Securities LLC now owns 4,948 shares of the software maker's stock worth $480,000 after buying an additional 1,403 shares in the last quarter. Sterling Capital Management LLC boosted its stake in shares of Agilysys by 834.4% in the third quarter. Sterling Capital Management LLC now owns 869 shares of the software maker's stock valued at $84,000 after buying an additional 776 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Agilysys by 124.3% in the third quarter. GAMMA Investing LLC now owns 1,494 shares of the software maker's stock valued at $145,000 after buying an additional 828 shares in the last quarter. MCF Advisors LLC boosted its stake in shares of Agilysys by 120.3% in the second quarter. MCF Advisors LLC now owns 478 shares of the software maker's stock valued at $50,000 after buying an additional 261 shares in the last quarter. Finally, Nine Ten Capital Management LLC grew its holdings in Agilysys by 0.3% during the second quarter. Nine Ten Capital Management LLC now owns 655,513 shares of the software maker's stock worth $68,501,000 after acquiring an additional 1,922 shares during the period. Institutional investors and hedge funds own 88.00% of the company's stock.

Key Stories Impacting Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Revenue rose 17.7% year over year to a record $93.4 million, surpassing the roughly $90.9 million consensus estimate. This marked Agilysys’ 19th consecutive quarter of record revenue. Agilysys Announces Record Revenue of $93.4M in Fiscal 2027 Second Quarter
• Positive Sentiment: Agilysys reported adjusted earnings of $0.67 per share, above the $0.55 analyst consensus and up from $0.41 a year earlier. Gross profit increased 23.2%, while net income rose 18.4% to $13.2 million. Agilysys Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised full-year guidance, supporting the view that demand for Agilysys’ hospitality software remains healthy. One valuation analysis estimates the shares could still be approximately 8% undervalued based on the revised outlook. Agilysys Could Be 8% Undervalued Following Raised Full Year Guidance
• Neutral Sentiment: The company ended the quarter with $137.6 million in cash, more than double the year-ago level, while operating cash flow was broadly unchanged at $15.2 million. This provides financial flexibility but does not indicate accelerating cash generation.
• Negative Sentiment: Despite the earnings beat cited by several reports, another data source calculated diluted EPS at $0.46, below a $0.56 estimate. The discrepancy may reflect differences between GAAP and adjusted figures and could contribute to investor caution. Agilysys Releases Q2 2027 Earnings
• Negative Sentiment: At approximately 91 times earnings, AGYS remains priced for substantial growth. The stock is also above the $100–$120 range of recently cited analyst targets, increasing the risk that investors sell into strong results.
• Negative Sentiment: Insiders reported nine sales and no purchases over the past six months, including substantial selling by the CEO. While insider transactions do not determine operating performance, they can weigh on sentiment.

Agilysys Company Profile

Agilysys, Inc develops and provides hospitality technology for hotels, resorts, casinos, cruise lines and other guest-focused businesses. Its software and services are designed to help operators manage core property functions, improve guest experiences and streamline food, beverage and retail operations.

The company's product portfolio includes property-management systems, point-of-sale solutions, inventory and procurement tools, payment services, guest-facing applications, mobile ordering and resort-management software.

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