Bank of New York Mellon Corp Trims Stake in Jack Henry & Associates, Inc. $JKHY

Key Points

• Bank of New York Mellon reduced its stake in Jack Henry & Associates by 7.9% in the first quarter, selling 54,773 shares and ending with 636,300 shares valued at about $100.6 million.
• Insiders bought shares in mid-May, with CEO Gregory R. Adelson purchasing 2,000 shares and CFO Mimi Carsley buying 375 shares, signaling confidence in the company.
• Jack Henry reported stronger-than-expected quarterly earnings of $1.71 per share, beating estimates, while revenue rose 8.7% year over year; the company also maintained a quarterly dividend of $0.61 per share.

Bank of New York Mellon Corp lowered its position in Jack Henry & Associates, Inc. (NASDAQ:JKHY - Free Report) by 7.9% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 636,300 shares of the technology company's stock after selling 54,773 shares during the period. Bank of New York Mellon Corp owned approximately 0.88% of Jack Henry & Associates worth $100,561,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also modified their holdings of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of 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 worth $246,420,000 after buying an additional 831,372 shares during the period. Norges Bank bought a new position in Jack Henry & Associates in the 4th quarter valued at $128,744,000. Northwestern Mutual Wealth Management Co. grew its position in Jack Henry & Associates by 6,728.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 621,546 shares of the technology company's stock valued at $113,420,000 after acquiring an additional 612,444 shares during the last quarter. Balyasny Asset Management L.P. increased its stake in Jack Henry & Associates by 560.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 557,078 shares of the technology company's stock worth $101,656,000 after purchasing an additional 472,698 shares during the period. Finally, UBS Group AG increased its stake in Jack Henry & Associates by 75.7% in the third quarter. UBS Group AG now owns 847,002 shares of the technology company's stock worth $126,144,000 after purchasing an additional 364,878 shares during the period. Hedge funds and other institutional investors own 98.75% of the company's stock.

Insider Buying and Selling at Jack Henry & Associates

In related news, CEO Gregory R. Adelson bought 2,000 shares of the business's stock in a transaction on Thursday, May 14th. The shares were bought at an average price of $133.42 per share, for a total transaction of $266,840.00. Following the completion of the purchase, the chief executive officer directly owned 21,036 shares of the company's stock, valued at approximately $2,806,623.12. This trade represents a 10.51% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mimi Carsley bought 375 shares of Jack Henry & Associates stock in a transaction on Thursday, May 14th. The stock was purchased at an average price of $134.12 per share, with a total value of $50,295.00. Following the completion of the acquisition, the chief financial officer directly owned 6,007 shares of the company's stock, valued at $805,658.84. This represents a 6.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.60% of the company's stock.

Jack Henry & Associates Stock Performance

JKHY stock opened at $153.16 on Tuesday. Jack Henry & Associates, Inc. has a 1-year low of $121.04 and a 1-year high of $193.39. The business has a 50-day moving average price of $137.60 and a 200 day moving average price of $156.03. The company has a market capitalization of $10.88 billion, a P/E ratio of 21.42, a PEG ratio of 2.13 and a beta of 0.57. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.74 and a quick ratio of 1.74.

Jack Henry & Associates (NASDAQ:JKHY - Get Free Report) last issued its earnings results on Tuesday, May 5th. The technology company reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.43 by $0.28. Jack Henry & Associates had a net margin of 20.64% and a return on equity of 24.03%. The company had revenue of $615.93 million for the quarter, compared to analysts' expectations of $619.67 million. During the same period in the prior year, the business earned $1.52 EPS. The firm's quarterly revenue was up 8.7% on a year-over-year basis. Jack Henry & Associates has set its FY 2026 guidance at 6.780-6.870 EPS. As a group, equities research analysts forecast that Jack Henry & Associates, Inc. will post 6.84 EPS for the current fiscal year.

Jack Henry & Associates Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Monday, June 1st were issued a $0.61 dividend. The ex-dividend date was Monday, June 1st. This represents a $2.44 dividend on an annualized basis and a dividend yield of 1.6%. Jack Henry & Associates's dividend payout ratio (DPR) is currently 34.13%.

Analysts Set New Price Targets

A number of analysts have recently issued reports on JKHY shares. DA Davidson reissued a "buy" rating and set a $198.00 target price on shares of Jack Henry & Associates in a research note on Monday, May 11th. The Goldman Sachs Group decreased their price objective on shares of Jack Henry & Associates from $180.00 to $161.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. Weiss Ratings cut shares of Jack Henry & Associates from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, May 29th. Royal Bank Of Canada dropped their target price on shares of Jack Henry & Associates from $180.00 to $173.00 and set an "outperform" rating on the stock in a research note on Thursday, June 18th. Finally, Loop Capital initiated coverage on shares of Jack Henry & Associates in a research report on Tuesday, March 31st. They set a "buy" rating and a $197.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Jack Henry & Associates has an average rating of "Moderate Buy" and an average target price of $186.07.

Jack Henry & Associates Company Profile

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.

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