JERRY JONES Implements A Sell Strategy: Offloads $548K In Agilysys Stock

JERRY JONES, Director at Agilysys AGYS, executed a substantial insider sell on December 7, according to an SEC filing.

What Happened: JONES opted to sell 6,294 shares of Agilysys, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $548,449.

As of Friday morning, Agilysys shares are down by 0.0%, currently priced at $84.33.

Get to Know Agilysys Better

Agilysys Inc develops industry-specific technology solutions to help manage businesses. The firm offers technological solutions to control business operations, including property management, point-of-sale, dining reservations, inventory and procurement, analytics, labor management, self-service, and document management. It serves sectors such as gaming, hotels, resorts and cruise, corporate foodservice management, restaurants, universities, stadiums, and healthcare. The majority of the revenues are generated through contract support, maintenance, and subscription services it provides. Agilysys operates across North America, Europe, the Middle East, Asia-Pacific, and India.

Financial Insights: Agilysys

Revenue Growth: Agilysys displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 22.78%. 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.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 59.87%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Agilysys's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.16.

Debt Management: Agilysys's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.25.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 179.36 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 10.16 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 103.55, Agilysys demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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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.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

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.

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