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

Agilysys, Inc. (NASDAQ:AGYS) shares gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $113.55, but opened at $95.71. Agilysys shares last traded at $89.3750, with a volume of 294,510 shares traded.

The software maker reported $0.42 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.04). Agilysys had a net margin of 9.79% and a return on equity of 11.01%. The firm had revenue of $80.39 million during the quarter, compared to analyst estimates of $79.07 million. During the same period in the prior year, the company earned $0.38 earnings per share. The business’s quarterly revenue was up 15.6% compared to the same quarter last year.

Key Agilysys News

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Needham reaffirmed a “buy” rating and a $140 price target, signaling analyst confidence and highlighting significant upside from current levels. Article Title
• Positive Sentiment: Seeking Alpha published an upgrade calling the post-earnings drop a “healthy dip to buy,” noting AGYS is diversifying beyond hotels (cruise, casinos, foodservice) and that roughly two-thirds of revenue is recurring and sticky — a structural positive for long-term cash flow. Agilysis: A Healthy Dip To Buy (Upgrade)
• Positive Sentiment: The company reported its 16th consecutive record revenue quarter: $80.4M, up 15.6% year-over-year, with recurring revenue contributing meaningfully — evidence of demand and recurring contract strength. Press Release
• Neutral Sentiment: Full earnings call transcript and company commentary are available for investors to parse for guidance detail and management tone; listening may clarify subscription-sales cadence and near-term guidance. Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups (Zacks) note revenue beat vs. consensus but emphasize the EPS miss — useful context for modeling near-term margins and cadence. AGYS Reports Q3 Earnings
• Neutral Sentiment: Reported short-interest data for the period appears to be erroneous/unavailable (shows 0 shares and NaN change), so short-squeeze dynamics are unclear from the published data.
• Negative Sentiment: Non-GAAP EPS missed consensus ($0.42 vs. $0.46), which likely triggered near-term selling despite the revenue beat. Earnings Miss
• Negative Sentiment: MarketWatch flagged management commentary / outlook that investors interpreted as implying a slowdown in subscription sales growth — this guidance concern is the primary driver of the sell-off. Outlook Story
• Negative Sentiment: Reports show unusually high trading volume during the decline, indicating heavy selling pressure as investors reacted to the EPS miss and cautious outlook. Stock Falls After Q3 Earnings Miss

Analyst Ratings Changes

Several research analysts have recently issued reports on AGYS shares. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $140.00 price objective on shares of Agilysys in a research note on Tuesday, October 28th. UBS Group reiterated a “buy” rating on shares of Agilysys in a report on Monday, December 15th. Needham & Company LLC reaffirmed a “buy” rating and set a $140.00 price objective on shares of Agilysys in a research report on Tuesday. Zacks Research downgraded Agilysys from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Finally, BTIG Research initiated coverage on shares of Agilysys in a research note on Tuesday, December 16th. They set a “neutral” rating for the company. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Agilysys presently has an average rating of “Moderate Buy” and an average target price of $145.40.

Insider Buying and Selling

In other Agilysys news, CFO William David Wood III sold 990 shares of the stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $124.64, for a total value of $123,393.60. Following the completion of the transaction, the chief financial officer owned 41,636 shares in the company, valued at approximately $5,189,511.04. This represents a 2.32% 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, insider Sethuram Shivashankar sold 497 shares of the business’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $124.64, for a total value of $61,946.08. Following the completion of the sale, the insider directly owned 24,031 shares in the company, valued at $2,995,223.84. This trade represents a 2.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,576 shares of company stock worth $1,189,070 over the last quarter. Company insiders own 8.60% of the company’s stock.

Institutional Investors Weigh In On Agilysys

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. boosted its position in shares of Agilysys by 30.1% in the first quarter. Advisors Asset Management Inc. now owns 688 shares of the software maker’s stock worth $50,000 after purchasing an additional 159 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Agilysys by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,395 shares of the software maker’s stock valued at $972,000 after buying an additional 569 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Agilysys by 125.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 331,953 shares of the software maker’s stock worth $24,080,000 after buying an additional 184,402 shares during the period. Jane Street Group LLC increased its stake in Agilysys by 1,025.2% in the 1st quarter. Jane Street Group LLC now owns 37,750 shares of the software maker’s stock worth $2,738,000 after buying an additional 34,395 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in Agilysys by 43.2% in the 2nd quarter. GAMMA Investing LLC now owns 305 shares of the software maker’s stock worth $35,000 after buying an additional 92 shares in the last quarter. Institutional investors own 88.00% of the company’s stock.

Agilysys Price Performance

The firm has a 50-day moving average of $119.24 and a 200-day moving average of $115.27. The stock has a market cap of $2.55 billion, a PE ratio of 84.92 and a beta of 0.43.

About Agilysys

Agilysys, Inc is a publicly traded technology company (NASDAQ: AGYS) that specializes in providing software and services to the hospitality industry. The company’s solutions span property management, point-of-sale, inventory and procurement, workforce management, analytics and mobile guest engagement. These offerings are designed to streamline hotel and resort operations, enhance guest experiences and improve financial performance for clients across the lodging, gaming, cruise, senior living and higher-education markets.

Agilysys delivers its portfolio through both cloud-based and on-premises deployments, enabling hoteliers and hospitality operators to select the infrastructure model that best aligns with their operational requirements and IT strategies.