Hsbc Holdings PLC Reduces Stock Holdings in Jack Henry & Associates, Inc. $JKHY

Key Points

• HSBC reduced its Jack Henry & Associates stake by 13.6% in the second quarter, selling 19,666 shares and retaining 125,074 shares worth approximately $17.2 million. Institutional investors collectively own 98.75% of the company.
• Jack Henry reported quarterly EPS of $1.57, exceeding the $1.44 analyst consensus, while revenue reached $633.1 million, up 4.6% year over year. The company also declared a quarterly dividend of $0.61 per share, yielding about 1.5% annually.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and a $193.40 average price target, compared with an opening price of $159.83.

Hsbc Holdings PLC lowered its stake in shares of Jack Henry & Associates, Inc. (NASDAQ:JKHY - Free Report) by 13.6% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 125,074 shares of the technology company's stock after selling 19,666 shares during the quarter. Hsbc Holdings PLC owned approximately 0.18% of Jack Henry & Associates worth $17,202,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also modified their holdings of the company. Dearborn Partners LLC purchased a new position in shares of Jack Henry & Associates in the 2nd quarter valued at $10,874,000. Public Employees Retirement System of Ohio acquired a new position in Jack Henry & Associates in the second quarter valued at $3,067,000. American Capital Management Inc. purchased a new position in shares of Jack Henry & Associates during the second quarter worth about $13,764,000. Danske Bank A S purchased a new position in shares of Jack Henry & Associates during the second quarter worth about $124,000. Finally, Summit Creek Advisors LLC acquired a new stake in shares of Jack Henry & Associates during the second quarter worth about $296,000. Hedge funds and other institutional investors own 98.75% of the company's stock.

Jack Henry & Associates Price Performance

Shares of JKHY opened at $159.83 on Wednesday. Jack Henry & Associates, Inc. has a fifty-two week low of $121.04 and a fifty-two week high of $193.39. The company has a market capitalization of $11.21 billion, a price-to-earnings ratio of 22.93, a price-to-earnings-growth ratio of 1.87 and a beta of 0.56. The firm has a 50-day simple moving average of $156.41 and a 200-day simple moving average of $151.18. 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 (NASDAQ:JKHY - Get Free Report) last released its quarterly earnings results on Tuesday, August 18th. The technology company reported $1.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.44 by $0.13. The firm had revenue of $633.10 million for the quarter, compared to analyst estimates of $631.60 million. Jack Henry & Associates had a return on equity of 23.49% and a net margin of 19.76%.The business's revenue was up 4.6% on a year-over-year basis. During the same quarter last year, the company posted $1.75 earnings per share. Jack Henry & Associates has set its FY 2027 guidance at 7.330-7.380 EPS. On average, equities research analysts anticipate that Jack Henry & Associates, Inc. will post 7.37 earnings per share for the current year.

Jack Henry & Associates Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 23rd. Stockholders of record on Monday, September 7th will be issued a $0.61 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 1.5%. Jack Henry & Associates's payout ratio is presently 35.01%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Weiss Ratings raised Jack Henry & Associates from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, August 20th. Stephens reaffirmed an "overweight" rating and set a $200.00 price target on shares of Jack Henry & Associates in a research report on Tuesday, August 11th. Royal Bank Of Canada boosted their price objective on Jack Henry & Associates from $173.00 to $178.00 and gave the company an "outperform" rating in a research note on Thursday, August 20th. UBS Group increased their price objective on Jack Henry & Associates from $165.00 to $170.00 and gave the company a "neutral" rating in a report on Thursday, August 20th. Finally, DA Davidson restated a "buy" rating and set a $198.00 target price on shares of Jack Henry & Associates in a research report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $193.40.

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.

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