Jack Henry & Associates (NASDAQ:JKHY) Sets New 52-Week Low - Time to Sell?

Key Points

• Jack Henry & Associates hit a new 52-week low, with shares falling to $123.56 intraday and closing at $124.22, down about 3.9% on the day.
• Despite the stock's weakness, the company beat quarterly EPS estimates with $1.71 versus $1.43 expected, though revenue of $615.93 million slightly missed consensus.
• Analyst sentiment remains positive overall, with a "Moderate Buy" rating and an average price target of $192.08, while the company also declared a $0.61 quarterly dividend payable June 19.

Jack Henry & Associates, Inc. (NASDAQ:JKHY - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $123.56 and last traded at $124.22, with a volume of 1710865 shares trading hands. The stock had previously closed at $129.29.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on JKHY shares. DA Davidson reaffirmed a "buy" rating and set a $198.00 target price on shares of Jack Henry & Associates in a research report on Monday, May 11th. Morgan Stanley set a $170.00 target price on Jack Henry & Associates in a research report on Friday, May 8th. Weiss Ratings lowered 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 decreased their target price on Jack Henry & Associates from $210.00 to $180.00 and set an "outperform" rating for the company in a research report on Thursday, May 7th. Finally, Loop Capital started coverage on Jack Henry & Associates in a research report on Tuesday, March 31st. They set a "buy" rating and a $197.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Jack Henry & Associates presently has an average rating of "Moderate Buy" and an average price target of $192.08.

Jack Henry & Associates Trading Down 3.9%

The firm has a 50 day simple moving average of $142.39 and a 200 day simple moving average of $162.81. 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 $8.83 billion, a P/E ratio of 17.37, a P/E/G ratio of 1.89 and a beta of 0.58.

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

Jack Henry & Associates Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Monday, June 1st will be paid a $0.61 dividend. The ex-dividend date is Monday, June 1st. This represents a $2.44 annualized dividend and a yield of 2.0%. Jack Henry & Associates's dividend payout ratio (DPR) is currently 34.13%.

Insider Activity

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Larson Financial Group LLC boosted its position in shares of Jack Henry & Associates by 2,816.7% during the 4th quarter. Larson Financial Group LLC now owns 175 shares of the technology company's stock valued at $32,000 after acquiring an additional 169 shares during the last quarter. Essential Partners LLC boosted its position in shares of Jack Henry & Associates by 65.8% during the 1st quarter. Essential Partners LLC now owns 184 shares of the technology company's stock valued at $29,000 after acquiring an additional 73 shares during the last quarter. CYBER HORNET ETFs LLC bought a new stake in shares of Jack Henry & Associates during the 2nd quarter valued at about $35,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Jack Henry & Associates by 3,900.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 200 shares of the technology company's stock valued at $30,000 after acquiring an additional 195 shares during the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in shares of Jack Henry & Associates during the 2nd quarter valued at about $39,000. Institutional investors own 98.75% of the company's stock.

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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