This Insider Has Just Sold Shares In Agilysys

We wouldn't blame Agilysys, Inc. (NASDAQ:AGYS) shareholders if they were a little worried about the fact that Melvin Keating, the Independent Director recently netted about US$1.3m selling shares at an average price of US$118. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

Check out our latest analysis for Agilysys

Agilysys Insider Transactions Over The Last Year

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 an insider was selling shares at slightly below the current price (US$121). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 10% of Ramesh Srinivasan's holding.

All up, insiders sold more shares in Agilysys than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Agilysys better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Agilysys Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Agilysys insiders own 4.7% of the company, currently worth about US$163m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. Our analysis shows 4 warning signs for Agilysys (2 are a bit concerning!) and we strongly recommend you look at these before investing.

Of course Agilysys may not be the best stock to buy. So you may wish to see this free collection of high quality 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.