Insider Transaction: Kyle C Badger Sells $50K Worth Of Agilysys Shares

Kyle C Badger, SVP at Agilysys AGYS, executed a substantial insider sell on July 3, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Badger sold 495 shares of Agilysys. The total transaction value is $50,689.

The latest update on Thursday morning shows Agilysys shares down by 0.0%, trading at $103.65.

All You Need to Know About Agilysys

Agilysys Inc has been a leader in hospitality software, delivering innovative cloud-native SaaS and on-premise solutions for hotels, resorts and cruise lines, casinos, corporate food service management, restaurants, universities, stadiums, and healthcare. The Company's software solutions include point-of-sale (POS), property management (PMS), inventory and procurement, payments, and related applications that manage and enhance the entire guest journey. Agilysys also is known for its world-class customer-centric service.

A Deep Dive into Agilysys's Financials

Revenue Growth: Agilysys displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 17.63%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Navigating Financial Profits:

• Gross Margin: The company faces challenges with a low gross margin of 61.52%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Agilysys's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.11.

Debt Management: With a below-average debt-to-equity ratio of 0.1, Agilysys adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Agilysys's P/E ratio of 32.7 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 11.72, Agilysys's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 105.01, Agilysys demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Agilysys's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.