Northland Securities Predicts Reduced Earnings for Agilysys

Agilysys, Inc. (NASDAQ:AGYS) – Research analysts at Northland Securities reduced their Q3 2027 earnings estimates for shares of Agilysys in a research note issued to investors on Tuesday, October 27th. Northland Securities analyst N. Chokshi now expects that the software maker will earn $0.37 per share for the quarter, down from their previous forecast of $0.46. The consensus estimate for Agilysys’ current full-year earnings is $1.75 per share. Northland Securities also issued estimates for Agilysys’ Q4 2027 earnings at $0.61 EPS, FY2027 earnings at $1.80 EPS, Q1 2028 earnings at $0.43 EPS, Q2 2028 earnings at $0.59 EPS, Q3 2028 earnings at $0.47 EPS, Q4 2028 earnings at $0.72 EPS and FY2028 earnings at $2.21 EPS.

Agilysys (NASDAQ:AGYS) last released its quarterly earnings results on Monday, October 26th. The software maker reported $0.67 EPS for the quarter, topping 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 analysts’ expectations of $90.92 million. During the same quarter in the prior year, the business earned $0.41 earnings per share. The company’s quarterly revenue was up 17.7% compared to the same quarter last year.

Other research analysts have also recently issued reports about the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Agilysys in a report on Friday, October 9th. Oppenheimer reiterated an “outperform” rating and set a $135.00 target price (up from $118.00) on shares of Agilysys in a research report on Tuesday. UBS Group set a $145.00 target price on Agilysys in a report on Tuesday. Needham & Company LLC raised their price target on Agilysys from $135.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Agilysys in a research report on Tuesday, July 28th. Five 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 price target of $141.25.

Agilysys Price Performance

AGYS opened at $115.86 on Friday. The business has a 50 day simple moving average of $108.45 and a 200-day simple moving average of $92.28. Agilysys has a 12 month low of $61.50 and a 12 month high of $134.46. The stock has a market capitalization of $3.27 billion, a P/E ratio of 75.74, a P/E/G ratio of 3.29 and a beta of 0.37.

Insider Transactions at Agilysys

In other news, CFO William Wood, III sold 6,000 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $114.72, for a total value of $688,320.00. Following the transaction, the chief financial officer directly owned 35,052 shares in the company, valued at $4,021,165.44. This trade represents a 14.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Ramesh Srinivasan sold 25,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $108.15, for a total transaction of $2,703,750.00. Following the completion of the sale, the chief executive officer directly owned 610,044 shares of the company’s stock, valued at $65,976,258.60. The trade was a 3.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 212,812 shares of company stock worth $23,046,675 in the last three months. 8.70% of the stock is currently owned by insiders.

Institutional Trading of Agilysys

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in Agilysys during the 2nd quarter valued at $431,704,000. Nine Ten Capital Management LLC increased its position in shares of Agilysys by 0.3% in the 2nd quarter. Nine Ten Capital Management LLC now owns 655,513 shares of the software maker’s stock worth $68,501,000 after purchasing an additional 1,922 shares during the last quarter. Conestoga Capital Advisors LLC increased its position in shares of Agilysys by 14.3% in the 1st quarter. Conestoga Capital Advisors LLC now owns 683,741 shares of the software maker’s stock worth $48,641,000 after purchasing an additional 85,600 shares during the last quarter. William Blair Investment Management LLC acquired a new stake in shares of Agilysys in the 2nd quarter valued at about $45,312,000. Finally, Principal Financial Group Inc. raised its stake in shares of Agilysys by 0.6% in the 1st quarter. Principal Financial Group Inc. now owns 463,682 shares of the software maker’s stock valued at $32,986,000 after purchasing an additional 2,983 shares in the last quarter. 88.00% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Northland Securities raised its longer-term earnings outlook. The firm increased its FY2027 EPS estimate from $1.73 to $1.80 and FY2028 EPS estimate from $2.18 to $2.21. It also lifted estimates for Q4 2027, Q1 2028, Q2 2028 and Q4 2028, signaling improving expectations for Agilysys’ growth and profitability.
• Positive Sentiment: Zacks upgraded Agilysys to a Rank #2, or “Buy.” The upgrade reflects improving expectations for the company’s earnings and could attract additional near-term investor interest. Zacks rating upgrade article
• Positive Sentiment: Several analysts remain bullish. Oppenheimer assigned an Outperform rating, while Piper Sandler and Needham projected strong price appreciation, reinforcing the positive sentiment around Agilysys’ long-term growth prospects. Oppenheimer rating article
• Neutral Sentiment: Northland’s revisions were mixed by quarter. The firm lowered its Q3 2027 EPS forecast from $0.46 to $0.37 and Q3 2028 estimate from $0.57 to $0.47, partially offsetting the increases elsewhere. Its current-year consensus reference remains $1.75 per share.
• Negative Sentiment: Recent results put margins in focus. Although Agilysys exceeded quarterly revenue and EPS expectations, reports indicated that investors were concerned about profitability, contributing to a pullback in the stock. The shares also trade at a relatively elevated valuation, with a P/E ratio above 75, leaving limited room for execution disappointments. Agilysys margins article

Agilysys Company Profile

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.