In a series of transactions, MAK Capital One LLC and affiliated entities have sold a significant amount of Agilysys Inc. (NASDAQ:AGYS) stock, totaling over $10 million. The sales occurred over three days, with prices ranging from $93.5949 to $94.5888 per share.
On May 30, 2024, 27,796 shares were sold at an average price of $94.5888, followed by a sale of 39,428 shares on May 31 at an average price of $94.4083. The series of transactions concluded on June 3, with the sale of 47,562 shares at an average price of $93.5949. The total proceeds from these sales amounted to approximately $10,803,081.
The transactions were executed under a pre-arranged trading plan in accordance with Rule 10b5-1, which allows insiders to establish predetermined trading plans for selling stocks at a time when they are not in possession of material non-public information.
MAK Capital One LLC is an affiliate of Michael A. Kaufman, a director of Agilysys Inc., and acts as the investment manager for MAK Capital Fund LP. Both MAK Capital and Mr. Kaufman 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 reported prices represent a weighted average, and the reporting persons have agreed to provide full information regarding the number of shares sold at each separate price upon request by Agilysys Inc. and the SEC.
Investors monitoring insider activity may find the sales noteworthy, as they represent a substantial change in the holdings of MAK Capital and its affiliates in Agilysys. The transactions provide a glimpse into the investment decisions made by insiders and can serve as one of many factors considered by shareholders in assessing the company's stock performance and outlook.
InvestingPro Insights
Amidst the significant stock sales by MAK Capital One LLC, Agilysys Inc. (NASDAQ: AGYS) presents a mixed financial outlook according to the latest data. The company's market capitalization stands at a solid $2.54 billion, reflecting investor confidence to some extent. Moreover, Agilysys has demonstrated robust revenue growth in the last twelve months as of Q4 2024, with a notable increase of nearly 19.89%, indicating a strong top-line performance.
Despite recent insider selling, the company's financial health appears sturdy, with a substantial gross profit margin of 60.75% over the same period, which may reassure investors of its profitability in operations. However, an InvestingPro Tip points out that analysts have revised their earnings expectations downwards for the upcoming period, which may suggest potential challenges ahead. Additionally, the company's strong return over the last month, with a 18.67% price total return, contrasts with the recent 9.66% hit the stock has taken over the last week.
Investors considering Agilysys as a potential addition to their portfolio should note that the company is trading at a high Price / Book multiple of 10.74, which might indicate a premium valuation compared to its tangible assets. For those looking for in-depth analysis and more InvestingPro Tips – there are 15 additional tips available, including insights on valuation multiples and profitability – a visit to https://www.investing.com/pro/AGYS could be highly beneficial. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for even more comprehensive investment analysis.
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