Agilysys (NASDAQ:AGYS) Stock Lifted to "Buy" by Wall Street Zen

Key Points

• Wall Street Zen upgraded Agilysys from “hold” to “buy.” Overall analyst sentiment is “Moderate Buy,” with five Buy ratings, three Holds, and an average price target of $141.25.
• Agilysys exceeded quarterly expectations, reporting EPS of $0.67 versus the $0.55 consensus and revenue of $93.36 million versus $90.92 million, with revenue up 17.7% year over year.
• Valuation and insider selling remain considerations. Shares trade at a P/E ratio of 76.22, while insiders sold approximately $23.1 million of stock over the past 90 days.

Agilysys (NASDAQ:AGYS - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other research analysts also recently issued reports on AGYS. Zacks Research downgraded shares of Agilysys from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Agilysys in a research report on Friday, October 9th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Agilysys in a research report on Tuesday, July 28th. Oppenheimer reiterated an "outperform" rating and set a $135.00 price objective (up from $118.00) on shares of Agilysys in a research note on Tuesday. Finally, Needham & Company LLC boosted their price objective on Agilysys from $135.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $141.25.

Agilysys Trading Down 0.1%

Shares of NASDAQ:AGYS opened at $115.80 on Friday. Agilysys has a twelve month low of $61.50 and a twelve month high of $133.32. The company's 50 day moving average is $108.50 and its 200 day moving average is $92.28. The company has a market cap of $3.27 billion, a PE ratio of 76.22, a price-to-earnings-growth ratio of 3.16 and a beta of 0.37.

Agilysys (NASDAQ:AGYS - Get Free Report) last announced its quarterly earnings data on Monday, October 26th. The software maker reported $0.67 EPS for the quarter, beating the consensus estimate of $0.55 by $0.12. The business had revenue of $93.36 million during the quarter, compared to analysts' expectations of $90.92 million. Agilysys had a net margin of 12.88% and a return on equity of 12.98%. The business's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.41 EPS. Equities research analysts predict that Agilysys will post 1.83 earnings per share for the current fiscal year.

Insider Transactions at Agilysys

In other Agilysys news, SVP Kyle C. Badger sold 8,400 shares of Agilysys stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $114.06, for a total value of $958,104.00. Following the completion of the transaction, the senior vice president owned 75,037 shares of the company's stock, valued at approximately $8,558,720.22. The trade was a 10.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Joe Youssef sold 1,002 shares of the company's stock in a transaction dated 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 transaction, the insider owned 19,045 shares of the company's stock, valued at approximately $2,183,318.80. This trade represents a 5.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 213,562 shares of company stock worth $23,132,895. Insiders own 8.70% of the company's stock.

Hedge Funds Weigh In On Agilysys

Several institutional investors and hedge funds have recently modified their holdings of AGYS. Optiver Holding B.V. lifted its stake in Agilysys by 700.0% in the 1st quarter. Optiver Holding B.V. now owns 456 shares of the software maker's stock valued at $32,000 after buying an additional 399 shares in the last quarter. Pinnacle Wealth Planning Services Inc. increased its stake in Agilysys by 36.0% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 393 shares of the software maker's stock worth $38,000 after buying an additional 104 shares in the last quarter. Versant Capital Management Inc increased its stake in Agilysys by 123.9% during the 2nd quarter. Versant Capital Management Inc now owns 421 shares of the software maker's stock worth $44,000 after buying an additional 233 shares in the last quarter. MCF Advisors LLC increased its stake in Agilysys by 120.3% during the 2nd quarter. MCF Advisors LLC now owns 478 shares of the software maker's stock worth $50,000 after buying an additional 261 shares in the last quarter. Finally, Covestor Ltd raised its holdings in shares of Agilysys by 511.8% during the third quarter. Covestor Ltd now owns 673 shares of the software maker's stock valued at $65,000 after acquiring an additional 563 shares during the last quarter. Hedge funds and other institutional investors own 88.00% of the company's stock.

Trending Headlines about Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Northland raised several forward earnings estimates. The firm increased its FY2027 EPS forecast to $1.80 from $1.73, FY2028 to $2.21 from $2.18, and also lifted estimates for Q2 2028, Q4 2027, Q1 2028 and Q4 2028. These revisions suggest confidence in Agilysys’ longer-term earnings growth. Agilysys analyst earnings estimates
• Positive Sentiment: Analyst coverage remains constructive. Oppenheimer assigned an Outperform rating, while Piper Sandler and Needham & Company forecast substantial potential appreciation. Agilysys was also upgraded to Zacks Rank #2 (Buy), reflecting improving expectations for its earnings outlook. Oppenheimer Outperform rating
• Neutral Sentiment: Recent operating results exceeded expectations. Agilysys reported quarterly EPS of $0.67 versus the $0.55 consensus estimate and revenue of $93.36 million versus $90.92 million, with revenue up 17.7% year over year. The strong results support the company’s growth narrative, although investors are focusing on the quality and sustainability of that growth. Agilysys sales results
• Negative Sentiment: Some Northland revisions moved lower. The firm cut its Q3 2027 EPS estimate to $0.37 from $0.46 and Q3 2028 to $0.47 from $0.57, creating a mixed overall outlook despite higher annual forecasts. Northland estimate revisions
• Negative Sentiment: Margins are the immediate concern. Reports indicate that the stock has weakened despite beating sales expectations because the latest results put profit margins in focus. With Agilysys trading at a high earnings multiple, investors may be demanding stronger margin expansion to justify the valuation. Agilysys margins report

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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