Agilysys (NASDAQ:AGYS) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Agilysys (NASDAQ:AGYS) from a hold rating to a buy rating in a research note issued to investors on Saturday,Wall Street Zen reports.

Other equities analysts have also issued research reports about the company. Cantor Fitzgerald restated an “overweight” rating on shares of Agilysys in a research note on Tuesday, July 28th. Needham & Company LLC raised their price target on shares of Agilysys from $135.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday, October 27th. Weiss Ratings restated a “hold (c)” rating on shares of Agilysys in a research report on Friday, October 9th. UBS Group set a $145.00 price target on shares of Agilysys in a research report on Tuesday. Finally, Oppenheimer restated an “outperform” rating and issued a $135.00 price objective (up from $118.00) on shares of Agilysys in a report on Tuesday, October 27th. 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, Agilysys has a consensus rating of “Moderate Buy” and an average target price of $141.25.

Agilysys Trading Down 0.1%

NASDAQ AGYS opened at $115.80 on Friday. The firm’s fifty day simple moving average is $108.50 and its two-hundred day simple moving average is $92.28. Agilysys has a 12-month low of $61.50 and a 12-month high of $133.32. The firm has a market capitalization of $3.27 billion, a P/E ratio of 74.23, a P/E/G ratio of 3.16 and a beta of 0.37.

Agilysys (NASDAQ:AGYS) last issued 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. Agilysys had a return on equity of 12.98% and a net margin of 12.88%. The firm had revenue of $93.36 million during the quarter, compared to analyst estimates of $90.92 million. During the same quarter in the prior year, the business posted $0.41 EPS. The business’s revenue for the quarter was up 17.7% compared to the same quarter last year. As a group, sell-side analysts predict that Agilysys will post 1.83 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director John Mutch sold 750 shares of the business’s stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $114.96, for a total transaction of $86,220.00. Following the transaction, the director owned 31,627 shares of the company’s stock, valued at approximately $3,635,839.92. The trade was a 2.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Ramesh Srinivasan sold 25,000 shares of the company’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $108.15, for a total transaction of $2,703,750.00. Following the completion of the sale, the chief executive officer directly owned 610,044 shares of the company’s stock, valued at $65,976,258.60. This represents a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 213,562 shares of company stock worth $23,132,895. 8.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Agilysys

Hedge funds and other institutional investors have recently bought and sold shares of the company. Covestor Ltd increased its stake in Agilysys by 511.8% during the third quarter. Covestor Ltd now owns 673 shares of the software maker’s stock worth $65,000 after acquiring an additional 563 shares during the last quarter. Pinnacle Wealth Planning Services Inc. lifted its stake in shares of Agilysys by 36.0% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 393 shares of the software maker’s stock valued at $38,000 after purchasing an additional 104 shares during the last quarter. Park Avenue Securities LLC lifted its stake in shares of Agilysys by 39.6% in the 3rd quarter. Park Avenue Securities LLC now owns 4,948 shares of the software maker’s stock valued at $480,000 after purchasing an additional 1,403 shares during the last quarter. Sterling Capital Management LLC grew its holdings in shares of Agilysys by 834.4% during the 3rd quarter. Sterling Capital Management LLC now owns 869 shares of the software maker’s stock worth $84,000 after purchasing an additional 776 shares during the period. Finally, GAMMA Investing LLC grew its holdings in shares of Agilysys by 124.3% during the 3rd quarter. GAMMA Investing LLC now owns 1,494 shares of the software maker’s stock worth $145,000 after purchasing an additional 828 shares during the period. 88.00% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting 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

About Agilysys

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.