RGM Capital LLC Makes New $58.95 Million Investment in Jack Henry & Associates, Inc. $JKHY

Key Points

• RGM Capital LLC acquired 322,842 shares of Jack Henry & Associates, valued at approximately $58.95 million, making it the 19th largest position in their portfolio.
• Director David B. Foss sold 5,780 shares of the company's stock for about $966,878, decreasing his ownership by 3.98%.
• Jack Henry & Associates reported earnings of $1.75 per share, surpassing analysts' estimates, and announced a quarterly dividend of $0.58 to be paid on September 26th.

RGM Capital LLC purchased a new position in shares of Jack Henry & Associates, Inc. (NASDAQ:JKHY - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 322,842 shares of the technology company's stock, valued at approximately $58,951,000. Jack Henry & Associates comprises about 2.4% of RGM Capital LLC's investment portfolio, making the stock its 19th largest position. RGM Capital LLC owned 0.44% of Jack Henry & Associates as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently modified their holdings of the stock. Caisse DE Depot ET Placement DU Quebec acquired a new position in shares of Jack Henry & Associates during the 1st quarter worth about $16,664,000. Jane Street Group LLC acquired a new position in shares of Jack Henry & Associates during the 1st quarter worth about $9,430,000. Kayne Anderson Rudnick Investment Management LLC raised its holdings in Jack Henry & Associates by 19.1% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 4,778,922 shares of the technology company's stock valued at $872,631,000 after acquiring an additional 765,441 shares during the last quarter. Comerica Bank raised its holdings in Jack Henry & Associates by 18.1% in the 1st quarter. Comerica Bank now owns 49,020 shares of the technology company's stock valued at $8,951,000 after acquiring an additional 7,499 shares during the last quarter. Finally, Synovus Financial Corp raised its holdings in Jack Henry & Associates by 14.2% in the 1st quarter. Synovus Financial Corp now owns 18,494 shares of the technology company's stock valued at $3,377,000 after acquiring an additional 2,299 shares during the last quarter. Institutional investors and hedge funds own 98.75% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. DA Davidson set a $204.00 price objective on shares of Jack Henry & Associates in a report on Friday, August 22nd. Keefe, Bruyette & Woods cut their price objective on shares of Jack Henry & Associates from $183.00 to $178.00 and set a "market perform" rating for the company in a report on Thursday, August 21st. Wall Street Zen upgraded shares of Jack Henry & Associates from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Robert W. Baird cut their price objective on shares of Jack Henry & Associates from $195.00 to $185.00 and set a "neutral" rating for the company in a report on Wednesday, August 20th. Finally, UBS Group cut their price objective on shares of Jack Henry & Associates from $185.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday, August 21st. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $182.70.

Jack Henry & Associates Stock Performance

Shares of NASDAQ:JKHY traded up $0.44 during trading on Friday, hitting $163.26. The company's stock had a trading volume of 692,777 shares, compared to its average volume of 643,682. The business has a 50 day moving average price of $171.91 and a two-hundred day moving average price of $174.86. The company has a market capitalization of $11.90 billion, a PE ratio of 26.16, a P/E/G ratio of 2.92 and a beta of 0.73. Jack Henry & Associates, Inc. has a fifty-two week low of $157.80 and a fifty-two week high of $196.00.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report) last posted its quarterly earnings results on Tuesday, August 19th. The technology company reported $1.75 EPS for the quarter, topping the consensus estimate of $1.50 by $0.25. The business had revenue of $615.37 million during the quarter, compared to the consensus estimate of $602.20 million. Jack Henry & Associates had a net margin of 19.19% and a return on equity of 22.60%. The company's quarterly revenue was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.33 earnings per share. Jack Henry & Associates has set its FY 2026 guidance at EPS. As a group, equities analysts expect that Jack Henry & Associates, Inc. will post 5.83 earnings per share for the current fiscal year.

Jack Henry & Associates Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be given a dividend of $0.58 per share. This represents a $2.32 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, September 5th. Jack Henry & Associates's dividend payout ratio (DPR) is 37.18%.

Insiders Place Their Bets

In related news, Director David B. Foss sold 5,780 shares of the company's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $167.28, for a total value of $966,878.40. Following the completion of the transaction, the director directly owned 139,265 shares of the company's stock, valued at $23,296,249.20. This represents a 3.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.37% of the stock is currently owned by insiders.

About Jack Henry & Associates

Jack Henry & Associates, Inc is a financial technology company, which engages in the provision of technology solutions and payment processing services. It operates through the following segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer and member information.