What Happened?
Shares of hospitality industry software provider Agilysys (NASDAQ: AGYS) jumped 5.3% in the morning session after the New York State Common Retirement Fund disclosed it had significantly increased its stake in the company.
According to a recent 13F filing with the Securities & Exchange Commission, the fund boosted its holdings in the hospitality software maker by 36.6% during the first quarter. The purchase of an additional 99,577 shares brought its total position to 371,428 shares, representing about 1.33% of the company.
This move signals growing confidence from large institutional investors. It follows a trend of other major funds increasing their positions in Agilysys, which provides software-enabled solutions for the hospitality industry. The news comes ahead of the company's scheduled first-quarter earnings release on July 21, 2025.
After the initial pop the shares cooled down to $118.28, up 4.8% from previous close.
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What Is The Market Telling Us
Agilysys’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 23.4% on the news that the company reported impressive first quarter 2025 results which exceeded analysts' sales and EBITDA estimates.
The main story here was subscription revenue, which grew more than 40% accounting for the bulk of recurring sales and giving the business more stability and visibility.
Margins held up well too, with gross margin steady for the quarter and slightly higher for the year, which helped push adjusted EBITDA by over 40% and gave EPS a similar lift. That kind of performance would normally spark a cheer, but guidance for next year brought things back down to earth. Management expected just 12% revenue growth in fiscal 2026, slower than the pace seen during the fiscal year (2025), and doesn't include any big gains from the PMS project still in the pipeline. Overall, this print was mixed but still had some key positives.
Agilysys is down 8.7% since the beginning of the year, and at $118.28 per share, it is trading 16.6% below its 52-week high of $141.74 from December 2024. Investors who bought $1,000 worth of Agilysys’s shares 5 years ago would now be looking at an investment worth $6,921.
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