Have Agilysys Insiders Been Selling Stock?

Anyone interested in Agilysys, Inc. (NASDAQ:AGYS) should probably be aware that a company insider, Chris Robertson, recently divested US$435k worth of shares in the company, at an average price of US$109 each. That sale was 15% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Agilysys

The Last 12 Months Of Insider Transactions At Agilysys

The CEO, President & Director, Ramesh Srinivasan, made the biggest insider sale in the last 12 months. That single transaction was for US$9.4m worth of shares at a price of US$93.84 each. That means that even when the share price was below the current price of US$113, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 10% of Ramesh Srinivasan's stake.

In total, Agilysys insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Agilysys Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Agilysys insiders own 5.2% of the company, currently worth about US$159m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Agilysys Insiders?

Insiders haven't bought Agilysys stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Agilysys is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Agilysys you should be aware of, and 2 of them are a bit concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.