Controller At Agilysys Sells $97K Of Stock

A substantial insider sell was reported on December 4, by Chris Robertson, Controller at Agilysys AGYS, based on the recent SEC filing.

What Happened: Robertson's recent move involves selling 729 shares of Agilysys. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $97,693.

As of Wednesday morning, Agilysys shares are down by 0.0%, currently priced at $132.99.

Delving into Agilysys's Background

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's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 16.49%. This indicates a substantial 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.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 63.29%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Agilysys exhibits below-average bottom-line performance with a current EPS of 0.05.

Debt Management: Agilysys's debt-to-equity ratio is below the industry average. With a ratio of 0.28, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current P/E ratio of 37.78 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 14.56, 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): A high EV/EBITDA ratio of 116.11 reflects market recognition of Agilysys's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

A Closer Look at Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.

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