ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Why Agilysys (AGYS) Shares Are Falling Today

AGYS Cover Image

What Happened?

Shares of hospitality industry software provider Agilysys (NASDAQ: AGYS) fell 9.8% in the morning session after the company reported fiscal first-quarter earnings that fell short of Wall Street estimates. 

The hospitality software provider announced adjusted earnings of 33 cents per share, missing the analyst consensus estimate of 39 cents. This occurred despite the company posting record quarterly revenue of $76.7 million, which surpassed forecasts. The mixed results highlighted a significant drop in profitability, as net income fell to $4.9 million from $14.1 million in the same quarter of the previous year. While the company saw strong growth in its recurring subscription revenue, which climbed 44.3% year-over-year, its gross margin slightly declined. The combination of rising sales but sharply lower profits appeared to concern investors, leading to the significant pre-market sell-off.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Agilysys? Access our full analysis report here, it’s free.

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 previous big move we wrote about was 6 days ago when the stock gained 5.3% on the news that 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.

Agilysys is down 18.5% since the beginning of the year, and at $105.66 per share, it is trading 25.5% 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 $5,705.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.