Jack Henry & Associates, Inc. $JKHY Shares Sold by Royal Bank of Canada

Key Points

• The Royal Bank of Canada has reduced its stake in Jack Henry & Associates by 32.1% during the first quarter, now owning approximately 0.28% of the company, valued at $37.4 million.
• Jack Henry & Associates reported a quarterly earnings of $1.75 per share, beating estimates, with a revenue increase of 9.9% year-over-year to $615.37 million.
• Several analysts have downgraded their ratings and price targets for Jack Henry & Associates, with current average estimates around $182.33 and a consensus rating of "Hold."

Royal Bank of Canada cut its stake in Jack Henry & Associates, Inc. (NASDAQ:JKHY - Free Report) by 32.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 204,988 shares of the technology company's stock after selling 97,104 shares during the period. Royal Bank of Canada owned about 0.28% of Jack Henry & Associates worth $37,429,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in JKHY. Kayne Anderson Rudnick Investment Management LLC raised its holdings in shares of Jack Henry & Associates by 19.1% in the first 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 buying an additional 765,441 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Jack Henry & Associates by 19,937.4% in the first quarter. GAMMA Investing LLC now owns 467,273 shares of the technology company's stock valued at $853,240,000 after buying an additional 464,941 shares during the last quarter. Deutsche Bank AG raised its holdings in shares of Jack Henry & Associates by 170.6% in the fourth quarter. Deutsche Bank AG now owns 583,444 shares of the technology company's stock valued at $102,278,000 after buying an additional 367,806 shares during the last quarter. RGM Capital LLC purchased a new stake in shares of Jack Henry & Associates in the first quarter valued at about $58,951,000. Finally, Nuveen LLC purchased a new stake in shares of Jack Henry & Associates in the first quarter valued at about $31,463,000. 98.75% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Royal Bank Of Canada reduced their target price on shares of Jack Henry & Associates from $203.00 to $185.00 and set a "sector perform" rating for the company in a report on Thursday, August 21st. Robert W. Baird cut their price target 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. Wall Street Zen cut shares of Jack Henry & Associates from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Keefe, Bruyette & Woods cut their price target 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. Finally, DA Davidson set a $204.00 price target on shares of Jack Henry & Associates in a report on Friday, August 22nd. Three equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $182.33.

Insiders Place Their Bets

In other Jack Henry & Associates news, Director David B. Foss sold 5,780 shares of the company's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $167.28, for a total transaction of $966,878.40. Following the transaction, the director directly owned 139,265 shares in the company, valued at approximately $23,296,249.20. This represents a 3.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 1.37% of the company's stock.

Jack Henry & Associates Stock Performance

JKHY traded down $1.30 on Friday, hitting $160.12. 693,438 shares of the company were exchanged, compared to its average volume of 757,030. The business's fifty day moving average is $168.22 and its 200 day moving average is $174.32. Jack Henry & Associates, Inc. has a fifty-two week low of $157.80 and a fifty-two week high of $196.00. The firm has a market capitalization of $11.67 billion, a P/E ratio of 25.66, a price-to-earnings-growth ratio of 2.88 and a beta of 0.79.

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

Jack Henry & Associates Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Shareholders 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 yield of 1.4%. The ex-dividend date is Friday, September 5th. Jack Henry & Associates's dividend payout ratio is presently 37.18%.

Jack Henry & Associates Profile

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.