Jack Henry & Associates, Inc. (NASDAQ:JKHY) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Jack Henry & Associates has a “Moderate Buy” consensus from 14 analysts, with an average 1-year target price of about $192.08. Recent coverage was mixed, as some firms cut targets while others reiterated bullish ratings.
• Company executives were active buyers: CFO Mimi Carsley and CEO Gregory R. Adelson both purchased shares in May, signaling insider confidence. Insiders currently own only 0.60% of the stock.
• The company reported Q3 earnings of $1.71 per share, beating estimates, while revenue came in slightly below forecasts at $615.93 million. Jack Henry also announced a quarterly dividend of $0.61 per share, payable June 19, and the stock was trading near its 52-week low.

Shares of Jack Henry & Associates, Inc. (NASDAQ:JKHY - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fourteen analysts that are presently covering the stock, MarketBeat.com reports. Four analysts have rated the stock with a hold recommendation, nine have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $192.0769.

A number of brokerages recently issued reports on JKHY. The Goldman Sachs Group reduced their target price on Jack Henry & Associates from $180.00 to $161.00 and set a "neutral" rating for the company in a research note on Thursday, May 7th. UBS Group set a $165.00 target price on Jack Henry & Associates in a research note on Thursday, May 7th. Weiss Ratings lowered Jack Henry & Associates from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, May 29th. DA Davidson restated a "buy" rating and issued a $198.00 target price on shares of Jack Henry & Associates in a research note on Monday, May 11th. Finally, Royal Bank Of Canada reduced their target price on Jack Henry & Associates from $210.00 to $180.00 and set an "outperform" rating for the company in a research note on Thursday, May 7th.

Insider Buying and Selling at Jack Henry & Associates

In other Jack Henry & Associates news, CFO Mimi Carsley acquired 375 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were acquired at an average cost of $134.12 per share, with a total value of $50,295.00. Following the acquisition, the chief financial officer directly owned 6,007 shares of the company's stock, valued at approximately $805,658.84. The trade was a 6.66% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Gregory R. Adelson acquired 2,000 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was acquired at an average cost of $133.42 per share, for a total transaction of $266,840.00. Following the completion of the acquisition, the chief executive officer directly owned 21,036 shares in the company, valued at approximately $2,806,623.12. The trade was a 10.51% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.60% of the stock is owned by corporate insiders.

Institutional Trading of Jack Henry & Associates

A number of hedge funds have recently modified their holdings of JKHY. Janus Henderson Group PLC boosted its stake in shares of Jack Henry & Associates by 13,343.0% in the first quarter. Janus Henderson Group PLC now owns 1,078,398 shares of the technology company's stock worth $170,430,000 after buying an additional 1,070,376 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Jack Henry & Associates by 1,911.3% in the third quarter. Van ECK Associates Corp now owns 1,111,632 shares of the technology company's stock worth $165,555,000 after buying an additional 1,056,362 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake 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 last quarter. Norges Bank purchased a new stake in shares of Jack Henry & Associates in the fourth quarter worth about $128,744,000. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Jack Henry & Associates by 6,728.7% in the fourth 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 during the last quarter. Hedge funds and other institutional investors own 98.75% of the company's stock.

Jack Henry & Associates Stock Down 0.5%

Jack Henry & Associates stock opened at $130.11 on Friday. 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 stock has a market capitalization of $9.24 billion, a price-to-earnings ratio of 18.20, a PEG ratio of 1.91 and a beta of 0.58. Jack Henry & Associates has a 1-year low of $129.25 and a 1-year high of $193.39. The business has a fifty day moving average price of $147.08 and a 200-day moving average price of $165.20.

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

Jack Henry & Associates Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Monday, June 1st will be issued a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, June 1st. Jack Henry & Associates's dividend payout ratio is 34.13%.

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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