Granite Sells $12 Million of Agilysys After Volatile Year for the Hospitality Tech Stock

California-based Granite Investment Partners reduced its position in Agilysys (NASDAQ:AGYS) by 89,611 shares in the third quarter, a move with an estiamted $11.9 million net value change.

What Happened

According to a filing with the U.S. Securities and Exchange Commission released on Monday, Granite Investment Partners sold 89,611 shares of Agilysys during the third quarter. The reduction brought the fund’s total position to 170,335 shares with a market value of $17.9 million as of September 30. The company’s position was approximately 1.5% of AUM in the prior quarter.

What Else to Know

Granite’s sale lowered its Agilysys stake to 1.% of reportable AUM; the position falls outside its top five holdings.

Top holdings after the filing:

• NASDAQ:MSFT: $74.96 million (4.3% of AUM)
• NASDAQ:GOOGL: $50.23 million (2.9% of AUM)
• NASDAQ:AAPL: $48.55 million (2.8% of AUM)
• NASDAQ:NVDA: $46.12 million (2.6% of AUM)
• NASDAQ:AMZN: $40.43 million (2.3% of AUM)

As of Tuesday's market close, Agilysys shares were priced at $128.00, up 4% over the past year and well underperforming the S&P 500's 14% gain over the same period.

Company Overview

Company Snapshot

Agilysys, Inc. is a technology company specializing in software and hardware solutions for the hospitality industry, with a global presence and a focus on enhancing operational efficiency and guest experiences. Its strategy centers on providing integrated, mission-critical systems that address the complex needs of hospitality operators. It generates revenue through software licensing, subscription services, technical support, and professional services tailored to hospitality operations and serves hotels, resorts, casinos, cruise lines, restaurants, universities, stadiums, and healthcare facilities across North America, Europe, Asia-Pacific, and India.

Foolish Take

Granite Investment Partners’ decision to trim its Agilysys position likely reflects caution after a year of volatility and modest returns for the hospitality software firm. The California-based manager sold 89,611 shares in the third quarter—an estimated $11.9 million reduction—bringing its holding down to 170,335 shares valued at $17.9 million as of September 30. The stake now represents just 1% of Granite’s reportable assets, down from 1.5% last quarter.

The move came as Agilysys shares have struggled to regain momentum, rising only 3.4% over the past year after intense volatility in the same period. In its latest results, the company reported its 15th consecutive quarter of record revenue, with sales up 16% year over year to $79.3 million and subscription revenue climbing 33%, but whether the firm's growth is already baked into its valuation remains up for debate.

For long-term investors, Granite’s reduction fits a broader trend of risk management within its portfolio. Agilysys’s fundamentals remain solid, with recurring revenue and strong product adoption, but sustained volatility underscores that execution and consistency—not growth headlines alone—will determine the stock's future.

Glossary

13F reportable assets: Assets that institutional investment managers must report quarterly to the SEC, showing their equity holdings.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The ownership interest or share that an investor or fund holds in a particular company.
Top holdings: The largest investments in a fund’s portfolio, typically ranked by market value or percentage of AUM.
Lagging the S&P 500: Underperforming the S&P 500 index over a specific time period.
Point of sale: Technology or systems used to process customer transactions at the location where sales are made.
Property management systems: Software platforms that help hospitality businesses manage reservations, guest check-in, billing, and other operations.
Subscription services: Recurring payment-based offerings, often for software or digital products, providing ongoing access and support.
Mission-critical systems: Essential technology solutions that organizations rely on for core operations and cannot function without.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.