DA Davidson Reaffirms "Buy" Rating for Jack Henry & Associates (NASDAQ:JKHY)

Key Points

• DA Davidson reaffirmed its “Buy” rating on Jack Henry & Associates and set a $198 price target, implying approximately 29% upside from the stock’s $153.12 opening price.
• Jack Henry exceeded quarterly expectations with $1.57 EPS versus $1.44 projected and $633.1 million in revenue versus $631.6 million expected; fiscal 2027 EPS guidance of $7.33–$7.38 also topped consensus.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and $185.71 target price, although year-over-year EPS and operating income declines indicate ongoing margin pressure.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at DA Davidson in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $198.00 price objective on the technology company's stock. DA Davidson's price objective points to a potential upside of 29.31% from the stock's current price.

A number of other equities analysts also recently issued reports on the stock. Wolfe Research set a $165.00 price objective on shares of Jack Henry & Associates in a research note on Monday, June 29th. Oppenheimer reaffirmed an "outperform" rating on shares of Jack Henry & Associates in a research note on Wednesday. Morgan Stanley set a $170.00 price target on Jack Henry & Associates in a research report on Friday, May 8th. The Goldman Sachs Group dropped their price target on shares of Jack Henry & Associates from $180.00 to $161.00 and set a "neutral" rating on the stock in a research note on Thursday, May 7th. Finally, Barclays initiated coverage on shares of Jack Henry & Associates in a research note on Tuesday, July 7th. They set an "overweight" rating and a $170.00 target price for the company. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $185.71.

Jack Henry & Associates Stock Performance

JKHY opened at $153.12 on Wednesday. Jack Henry & Associates has a 1-year low of $121.04 and a 1-year high of $193.39. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.74 and a quick ratio of 1.74. The firm has a market cap of $10.88 billion, a P/E ratio of 21.42, a PEG ratio of 2.16 and a beta of 0.55. The company has a 50 day simple moving average of $144.82 and a two-hundred day simple moving average of $151.25.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report) last released its quarterly earnings data on Tuesday, August 18th. The technology company reported $1.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.44 by $0.13. The firm had revenue of $633.10 million for the quarter, compared to analysts' expectations of $631.60 million. Jack Henry & Associates had a net margin of 20.64% and a return on equity of 24.03%. The company's revenue for the quarter was up 4.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.75 earnings per share. Jack Henry & Associates has set its FY 2027 guidance at 7.330-7.380 EPS. Equities analysts forecast that Jack Henry & Associates will post 6.85 earnings per share for the current fiscal year.

Institutional Trading of Jack Henry & Associates

Large investors have recently bought and sold shares of the business. Janus Henderson Group PLC increased 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 during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Jack Henry & Associates by 160.2% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,350,393 shares of the technology company's stock valued at $246,420,000 after purchasing an additional 831,372 shares during the period. Norges Bank purchased a new stake in shares of Jack Henry & Associates in the 4th quarter valued at $128,744,000. Bank of New York Mellon Corp purchased a new stake in Jack Henry & Associates during the second quarter worth about $87,669,000. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in Jack Henry & Associates by 6,728.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 621,546 shares of the technology company's stock worth $113,420,000 after buying an additional 612,444 shares in the last quarter. Hedge funds and other institutional investors own 98.75% of the company's stock.

Key Stories Impacting Jack Henry & Associates

Here are the key news stories impacting Jack Henry & Associates this week:

• Positive Sentiment: Jack Henry reported fourth-quarter adjusted earnings of $1.57 per share, above the $1.44 analyst consensus, while revenue of $633.1 million also exceeded estimates of approximately $631.6 million. Strong demand for banking and payments offerings supported the results. Reuters report on Jack Henry quarterly results
• Positive Sentiment: Management provided fiscal 2027 EPS guidance of $7.33 to $7.38, above the $7.10 consensus estimate. Revenue guidance of roughly $2.7 billion was broadly in line with expectations, but the earnings outlook suggests potential operating leverage and solid demand. Jack Henry fiscal 2026 results and fiscal 2027 guidance
• Neutral Sentiment: Fiscal fourth-quarter revenue increased approximately 4.6% to 4.7% year over year, indicating continued growth, while the company maintained a strong 20.64% net margin and 24.03% return on equity.
• Negative Sentiment: GAAP EPS declined from $1.75 to $1.57 year over year, a contraction of 10.2%. GAAP operating income fell 12.2%, while adjusted operating income decreased 3.1%, pointing to margin pressure despite the revenue and earnings beats. Zacks analysis of Jack Henry quarterly metrics

About Jack Henry & Associates

Jack Henry & Associates, Inc is a leading provider of technology solutions and payment processing services for the financial services industry. Founded in 1976 and headquartered in Monett, Missouri, the company develops and supports a comprehensive suite of software and services designed to help banks, credit unions and other financial institutions streamline operations, improve customer engagement and manage risk.

The company's core processing platforms deliver end-to-end account processing, general ledger, deposit operations and loan servicing functionality.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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