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

Key Points

• Wall Street sentiment is positive on Jack Henry & Associates, with 14 brokerages giving it a consensus rating of “Moderate Buy” and an average 1-year price target of about $187.31.
• The company’s recent quarterly results were solid: EPS of $1.71 beat expectations, while revenue rose 8.7% year over year to $615.93 million. Jack Henry also reaffirmed full-year guidance of 6.780–6.870 EPS.
• Insider and institutional activity was notable, with CEO Gregory R. Adelson and CFO Mimi Carsley both buying shares, while institutional investors own 98.75% of the stock. The company also paid a quarterly dividend of $0.61 per share, implying an annual yield of about 1.8%.

Jack Henry & Associates, Inc. (NASDAQ:JKHY - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the fourteen brokerages that are covering the firm, MarketBeat.com reports. Four equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $187.3077.

JKHY has been the topic of a number of analyst reports. UBS Group set a $165.00 price objective on Jack Henry & Associates in a report on Thursday, May 7th. Wolfe Research set a $165.00 target price on Jack Henry & Associates in a report on Monday. Royal Bank Of Canada lowered their target price on Jack Henry & Associates from $180.00 to $173.00 and set an "outperform" rating on the stock in a report on Thursday, June 18th. Morgan Stanley set a $170.00 target price on Jack Henry & Associates in a report on Friday, May 8th. Finally, Loop Capital started coverage on Jack Henry & Associates in a report on Tuesday, March 31st. They issued a "buy" rating and a $197.00 target price on the stock.

Insider Buying and Selling

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

Institutional Trading of Jack Henry & Associates

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in JKHY. Janus Henderson Group PLC lifted its position in shares of Jack Henry & Associates by 13,343.0% in the 1st quarter. Janus Henderson Group PLC now owns 1,078,398 shares of the technology company's stock worth $170,430,000 after acquiring an additional 1,070,376 shares during the period. Van ECK Associates Corp lifted its position in shares of Jack Henry & Associates by 1,911.3% in the 3rd quarter. Van ECK Associates Corp now owns 1,111,632 shares of the technology company's stock worth $165,555,000 after acquiring an additional 1,056,362 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Jack Henry & Associates by 160.2% in the 4th 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 acquiring an additional 831,372 shares during the period. Norges Bank bought a new stake in shares of Jack Henry & Associates in the 4th quarter worth approximately $128,744,000. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of 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 worth $113,420,000 after acquiring an additional 612,444 shares during the period. Institutional investors and hedge funds own 98.75% of the company's stock.

Jack Henry & Associates Stock Performance

Shares of NASDAQ JKHY opened at $137.74 on Wednesday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.74 and a current ratio of 1.74. The firm has a market cap of $9.79 billion, a price-to-earnings ratio of 19.26, a P/E/G ratio of 2.00 and a beta of 0.58. The business's 50-day simple moving average is $138.11 and its 200-day simple moving average is $159.72. Jack Henry & Associates has a 52 week low of $121.04 and a 52 week high of $193.39.

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

Jack Henry & Associates Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Monday, June 1st were issued a $0.61 dividend. The ex-dividend date of this dividend was Monday, June 1st. This represents a $2.44 dividend on an annualized basis and a yield of 1.8%. Jack Henry & Associates's dividend payout ratio (DPR) 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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