Bank of America Begins Coverage on Jack Henry & Associates (NASDAQ:JKHY)

Key Points

• Bank of America initiated coverage of Jack Henry & Associates with a “neutral” rating and a $165 price target, implying approximately 4.16% upside from the prior close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $190, despite Bank of America’s more cautious view.
• Jack Henry’s shares rose 2.0% to $158.41. The company recently exceeded quarterly earnings expectations, reporting $1.57 in EPS and $633.1 million in revenue, up 4.6% year over year.

Equities research analysts at Bank of America started coverage on shares of Jack Henry & Associates (NASDAQ:JKHY - Get Free Report) in a research note issued on Thursday. The brokerage set a "neutral" rating and a $165.00 price target on the technology company's stock. Bank of America's target price suggests a potential upside of 4.16% from the company's previous close.

Several other equities analysts have also issued reports on JKHY. Weiss Ratings upgraded Jack Henry & Associates from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, August 20th. Seaport Research Partners assumed coverage on Jack Henry & Associates in a research report on Monday, September 28th. They issued a "buy" rating and a $193.00 price objective for the company. Royal Bank Of Canada reissued an "outperform" rating and set a $178.00 price objective on shares of Jack Henry & Associates in a research note on Wednesday, September 30th. Oppenheimer raised their target price on shares of Jack Henry & Associates from $208.00 to $209.00 and gave the stock an "outperform" rating in a report on Wednesday, August 19th. Finally, UBS Group restated a "neutral" rating on shares of Jack Henry & Associates in a report on Wednesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $190.00.

Jack Henry & Associates Trading Up 2.0%

Shares of JKHY stock traded up $3.15 on Thursday, hitting $158.41. 52,279 shares of the company's stock traded hands, compared to its average volume of 1,141,352. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.17 and a current ratio of 1.17. Jack Henry & Associates has a one year low of $121.04 and a one year high of $193.39. The company's fifty day simple moving average is $156.57 and its 200 day simple moving average is $148.83. The stock has a market capitalization of $11.11 billion, a price-to-earnings ratio of 22.68, a P/E/G ratio of 1.74 and a beta of 0.56.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report) last issued its earnings results on Tuesday, August 18th. The technology company reported $1.57 EPS for the quarter, topping analysts' consensus estimates of $1.44 by $0.13. Jack Henry & Associates had a net margin of 19.76% and a return on equity of 23.49%. The company had revenue of $633.10 million for the quarter, compared to analysts' expectations of $631.60 million. During the same quarter last year, the company earned $1.75 EPS. The firm's revenue was up 4.6% compared to the same quarter last year. Jack Henry & Associates has set its FY 2027 guidance at 7.330-7.380 EPS. Equities analysts forecast that Jack Henry & Associates will post 7.31 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of JKHY. Van ECK Associates Corp boosted its position in shares of Jack Henry & Associates by 1,918.2% during the second quarter. Van ECK Associates Corp now owns 1,308,353 shares of the technology company's stock valued at $180,213,000 after buying an additional 1,243,526 shares during the last quarter. Janus Henderson Group PLC boosted its holdings in shares of Jack Henry & Associates by 13,343.0% during the 1st quarter. Janus Henderson Group PLC now owns 1,078,398 shares of the technology company's stock valued at $170,430,000 after acquiring an additional 1,070,376 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Jack Henry & Associates by 13.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 752,025 shares of the technology company's stock valued at $118,842,000 after acquiring an additional 86,810 shares during the last quarter. First Trust Advisors LP boosted its holdings in shares of Jack Henry & Associates by 33.8% during the 1st quarter. First Trust Advisors LP now owns 734,298 shares of the technology company's stock valued at $116,048,000 after acquiring an additional 185,465 shares during the last quarter. Finally, Epoch Investment Partners Inc. grew its stake in shares of Jack Henry & Associates by 82.4% in the first quarter. Epoch Investment Partners Inc. now owns 681,587 shares of the technology company's stock worth $107,718,000 after acquiring an additional 307,886 shares during the period. Institutional investors own 98.75% of the company's stock.

About Jack Henry & Associates

Jack Henry & Associates, Inc is a financial technology company that provides software, payment processing and related services to banks, credit unions and other financial institutions. Founded in 1976 and headquartered in Monett, Missouri, the company serves primarily U.S.-based community and regional financial institutions.

The company offers core processing platforms for banks and credit unions, including Jack Henry Banking and Symitar solutions. Its products and services support account processing, lending, deposit operations, financial reporting, digital banking, mobile banking and customer relationship management.

Jack Henry also provides payment processing, card services, electronic funds transfer capabilities, online account opening, cybersecurity, document and information management, business intelligence and other technology services.

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