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American Software Inc. (NASDAQ: NASDAQ:AMSWA) has made key announcements following its annual shareholder meeting held on Monday, including changes to its board committees and the approval of a new equity compensation plan.
During the annual meeting, shareholders ratified the 2024 Equity Compensation Plan, which had been adopted by the board on May 29, 2024, and subsequently amended for immaterial and clarifying revisions. The plan aims to provide incentives to eligible officers, directors, and employees.
The board also reorganized its standing committees based on an assessment by the Nominating and Corporate Governance Committee. Effective Monday, the Audit Committee is chaired by Nicole Wu, the Compensation Committee by Matthew G. McKenna, and the Governance Committee by Lizanne Thomas.
All director nominees were elected, and KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year ending April 30, 2025. A resolution approving the compensation of named executive officers was also passed.
In other recent news, American Software declared a quarterly dividend of $.11 per share, available to Class A shareholders recorded by November 15, 2024. The company also announced a strategic shift towards its core supply chain software, planning to rebrand as Logility.
The move was marked by the acquisition of Garvis and the launch of DemandAI+. For fiscal year 2025, the company projects total revenue between $104 million and $108 million and adjusted EBITDA ranging from $15 million to $16.4 million.
In view of this, B. Riley maintained a Buy rating on American Software, despite reducing its price target from $16 to $14. The firm's analysis anticipates the company's Q1 2025 results, projecting revenues and adjusted EBITDA to fall slightly below consensus. The financial firm also highlighted American Software's strong financial position, citing nearly $84 million in cash reserves and a lack of debt.
InvestingPro Insights
As American Software Inc. (NASDAQ:AMSWA) navigates through corporate restructuring and shareholder decisions, investors may find it useful to consider some key financial metrics and insights provided by InvestingPro. The company holds a market capitalization of $341.46 million, which is indicative of its size and market presence. Notably, AMSWA has a Price-to-Earnings (P/E) ratio of 30.65, suggesting that the stock is trading at a premium compared to its earnings. This is further emphasized by the adjusted P/E ratio for the last twelve months as of Q4 2024, which stands at 47.14.
Moreover, American Software has maintained a consistent dividend payout for 22 consecutive years, with a current dividend yield of 4.29%, reflecting a commitment to returning value to shareholders. This financial stability is also supported by the company's liquidity position, as it holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations.
InvestingPro Tips highlight that while AMSWA is trading at a high earnings multiple, it also boasts a high shareholder yield. For those considering a deeper analysis, there are additional tips available on InvestingPro, including insights on earnings revisions by analysts and valuation multiples. For a comprehensive understanding of American Software's financial health and future prospects, interested readers can explore further at InvestingPro.
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