Agilysys (NASDAQ:AGYS) Raised to Buy at Wall Street Zen

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

A number of other research analysts also recently weighed in on AGYS. Cantor Fitzgerald reiterated an “overweight” rating on shares of Agilysys in a report on Tuesday, July 28th. Needham & Company LLC increased their target price on shares of Agilysys from $135.00 to $145.00 and gave the stock a “buy” rating in a research note on Tuesday, October 27th. Oppenheimer reiterated an “outperform” rating and issued a $135.00 price objective (up from $118.00) on shares of Agilysys in a research note on Tuesday, October 27th. Zacks Research downgraded shares of Agilysys from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Finally, Piper Sandler increased their price objective on shares of Agilysys from $120.00 to $140.00 and gave the company an “overweight” rating in a research report on Tuesday, October 27th. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $141.25.

Agilysys Price Performance

NASDAQ:AGYS opened at $115.80 on Friday. The company has a market cap of $3.27 billion, a P/E ratio of 74.23, a P/E/G ratio of 3.16 and a beta of 0.40. The stock’s fifty day moving average price is $108.50 and its two-hundred day moving average price is $92.28. Agilysys has a 1 year low of $61.50 and a 1 year high of $133.32.

Agilysys (NASDAQ:AGYS) last posted its quarterly earnings data on Monday, October 26th. The software maker reported $0.67 earnings per share (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 business had revenue of $93.36 million during the quarter, compared to analyst estimates of $90.92 million. During the same period last year, the company earned $0.41 EPS. The company’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, analysts expect that Agilysys will post 1.83 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Agilysys news, CFO William Wood, III sold 6,000 shares of Agilysys stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $114.72, for a total transaction of $688,320.00. Following the transaction, the chief financial officer owned 35,052 shares of the company’s stock, valued at $4,021,165.44. This trade represents a 14.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joe Youssef sold 1,002 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $114.64, for a total transaction of $114,869.28. Following the transaction, the insider directly owned 19,045 shares in the company, valued at approximately $2,183,318.80. This represents a 5.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 213,562 shares of company stock valued at $23,132,895. 8.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Agilysys

A number of hedge funds have recently modified their holdings of the company. Bank of America Corp DE acquired a new position in Agilysys during the 2nd quarter worth approximately $16,554,000. BlackRock Inc. acquired a new position in Agilysys during the second quarter valued at approximately $431,704,000. Jupiter Topco LLC bought a new stake in shares of Agilysys during the second quarter valued at approximately $1,244,000. Quantinno Capital Management LP grew its holdings in shares of Agilysys by 107.2% during the first quarter. Quantinno Capital Management LP now owns 9,579 shares of the software maker’s stock worth $681,000 after purchasing an additional 4,955 shares during the last quarter. Finally, The Manufacturers Life Insurance Company bought a new stake in Agilysys in the second quarter valued at about $1,420,000. Hedge funds and other institutional investors own 88.00% of the company’s stock.

Key Agilysys News

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.