Jack Henry & Associates (NASDAQ:JKHY) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its “Outperform” rating on Jack Henry & Associates and set a $178 price target, implying 22.43% upside from the prior close.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $191.47 based on coverage from multiple research firms.
• Jack Henry exceeded quarterly earnings expectations, reporting $1.57 EPS versus a $1.44 consensus estimate and $633.1 million in revenue, up 4.6% year over year; institutional investors own 98.75% of its shares.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report)'s stock had its "outperform" rating restated by investment analysts at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They presently have a $178.00 price objective on the technology company's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 22.43% from the company's previous close.

Several other research firms also recently commented on JKHY. Barclays increased their price objective on Jack Henry & Associates from $170.00 to $185.00 and gave the company an "overweight" rating in a research note on Thursday, August 20th. Oppenheimer raised their price objective on Jack Henry & Associates from $208.00 to $209.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 19th. Weiss Ratings upgraded Jack Henry & Associates from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 20th. DA Davidson restated a "buy" rating and set a $198.00 target price on shares of Jack Henry & Associates in a report on Wednesday, September 2nd. Finally, The Goldman Sachs Group raised their target price on Jack Henry & Associates from $158.00 to $178.00 and gave the company a "neutral" rating in a report on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $191.47.

Jack Henry & Associates Price Performance

Shares of NASDAQ JKHY opened at $145.39 on Wednesday. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.02. Jack Henry & Associates has a 52 week low of $121.04 and a 52 week high of $193.39. The business's 50 day moving average price is $157.99 and its 200 day moving average price is $150.09. The firm has a market cap of $10.19 billion, a P/E ratio of 20.95, a P/E/G ratio of 1.68 and a beta of 0.56.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report) last released its quarterly earnings data on Tuesday, August 18th. The technology company reported $1.57 EPS for the quarter, topping the consensus estimate of $1.44 by $0.13. Jack Henry & Associates had a return on equity of 23.49% and a net margin of 19.76%.The business had revenue of $633.10 million for the quarter, compared to analyst estimates of $631.60 million. During the same quarter in the prior year, the firm posted $1.75 EPS. The business's quarterly 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. On average, sell-side analysts expect that Jack Henry & Associates will post 7.33 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Van ECK Associates Corp increased its holdings in shares of Jack Henry & Associates by 1,918.2% in 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 purchasing an additional 1,243,526 shares during the period. Janus Henderson Group PLC boosted its position in Jack Henry & Associates by 13,343.0% during the first quarter. Janus Henderson Group PLC now owns 1,078,398 shares of the technology company's stock worth $170,430,000 after purchasing an additional 1,070,376 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Jack Henry & Associates by 13.0% during the first quarter. Dimensional Fund Advisors LP now owns 752,025 shares of the technology company's stock worth $118,842,000 after purchasing an additional 86,810 shares in the last quarter. First Trust Advisors LP boosted its position in Jack Henry & Associates by 33.8% during the first quarter. First Trust Advisors LP now owns 734,298 shares of the technology company's stock worth $116,048,000 after purchasing an additional 185,465 shares in the last quarter. Finally, Norges Bank purchased a new stake in Jack Henry & Associates during the fourth quarter worth $128,744,000. Institutional investors and hedge funds 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.