Michael A. Kaufman, through entities affiliated with MAK Capital, has sold a significant portion of Agilysys Inc. (NASDAQ:AGYS) stock, totaling over $16 million. The transactions occurred over three separate days, with shares sold at prices ranging from $96.43 to $99.35.
The sales were executed under a prearranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. According to the plan dated January 25, 2024, between MAK Capital One LLC and BTIG, LLC, a total of 166,712 shares of Agilysys Inc. were sold.
The first transaction took place on June 21, where 61,035 shares were sold at an average price of $96.43 per share. This was followed by a sale of 45,000 shares on June 24, at an average price of $98.48 per share. The final transaction on June 25 saw 60,677 shares sold at an average price of $99.35 per share. The total value of the shares sold amounted to approximately $16,345,604.
MAK Capital One LLC acts as the investment manager for MAK Capital Fund LP, and Mr. Kaufman is the managing member of MAK Capital. Both entities may be deemed to indirectly beneficially own the shares held by MAK Fund. However, they have disclaimed such beneficial ownership, except to the extent of their pecuniary interest.
The SEC filing also clarifies that the reported prices are weighted averages and that the reporting persons will provide full information regarding the number of shares sold at each price upon request by the Issuer or the SEC.
This substantial sale by a key affiliate of an Agilysys director suggests significant portfolio adjustments by MAK Capital, although the reasons behind the sale have not been disclosed. Investors and analysts often monitor insider transactions for insights into company health and management sentiment.
In other recent news, Agilysys Inc. has been the center of attention in the investment world due to its impressive financial performance and positive outlooks from analysts. The company reported record-breaking revenues for the ninth consecutive quarter, with a 17.6% increase from the prior year, reaching $62.2 million in the fourth quarter of fiscal year 2024. Full fiscal year revenue also set a record at $237.5 million, up 19.9% from the previous year. On top of this, Agilysys projects a revenue growth of 16% to 18% for fiscal 2025, anticipating revenues between $275 million to $280 million.
Agilysys also secured significant deals recently, including an agreement with Marriott International (NASDAQ:MAR) to integrate the Agilysys Golf product suite into Marriott's hotels across North America, the Caribbean, and Latin America. Another major development was the company's initiation with an Outperform rating by William Blair, which was based on Agilysys's robust sales momentum and potential for expansion.
In addition, Needham maintained a Buy rating on Agilysys and increased the price target to $125 from $100. Oppenheimer also showed confidence in the company by raising its price target from $95.00 to $100.00. These recent developments reflect a promising future for Agilysys, with the company anticipating at least 27% growth in subscription revenue.
InvestingPro Insights
As Agilysys Inc. (NASDAQ:AGYS) experiences notable insider trading activity, investors may find additional context through real-time metrics and InvestingPro Tips. Michael A. Kaufman's sizable stock sale coincides with a period where AGYS is trading near its 52-week high, with a price 96.64% of that peak, reflecting a robust year-over-year price total return of 51.83%. This performance aligns with the InvestingPro Tip highlighting AGYS's strong return over the last year.
InvestingPro Data further reveals that AGYS has a market capitalization of $2.74 billion and is trading at a Price / Earnings (P/E) ratio of 30.39, which adjusts to 32.25 for the last twelve months as of Q4 2024. The company's revenue growth is also notable, with a 19.89% increase over the last twelve months as of Q4 2024, indicating a healthy expansion in its financial performance.
One InvestingPro Tip that investors should consider is that AGYS holds more cash than debt on its balance sheet, which may provide a cushion against market volatility and offer financial flexibility for future investments or operations. Additionally, analysts predict the company will be profitable this year, which is a positive signal for potential investors.
To gain further insights and access more detailed analysis, readers can explore additional InvestingPro Tips for AGYS at Investing.com. Currently, there are 15 additional tips available, which could provide a comprehensive outlook on the company's financial health and stock performance. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to receive an additional 10% off.
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