Jack Henry & Associates Receives “Moderate Buy” Rating from Analysts
Jack Henry & Associates, Inc. (NASDAQ: JKHY) has garnered a consensus rating of “Moderate Buy” from analysts covering the stock, according to Marketbeat. Twelve analysts have weighed in, with seven recommending a hold, four advising a buy, and one suggesting a strong buy. The average target price set by brokers who have recently updated their assessments is approximately $184.56.
Several brokerage firms have recently revised their recommendations for Jack Henry & Associates. On November 9, Wall Street Zen downgraded the stock from a “buy” to a “hold.” Earlier in August, UBS Group reduced its target price from $185.00 to $175.00 while maintaining a “neutral” rating. Similarly, the Royal Bank of Canada lowered its target price from $203.00 to $185.00 with a “sector perform” rating. In contrast, Compass Point upgraded the stock from “neutral” to “buy,” increasing its target price from $179.00 to $187.00 on November 6. DA Davidson also adjusted its price objective, reducing it from $204.00 to $190.00 while continuing to recommend a “buy.”
Quarterly Earnings and Dividend Announcement
Jack Henry & Associates reported its quarterly earnings on November 4, revealing earnings per share (EPS) of $1.97, surpassing analysts’ expectations of $1.64 by $0.33. The technology company achieved a net margin of 19.86% and a return on equity of 23.11%. Revenue for the quarter totaled $636.11 million, slightly above the anticipated $634.42 million. This marks a 7.3% increase in revenue compared to the same quarter the previous year. For the fiscal year 2026, the company has projected an EPS guidance between $6.380 and $6.490. Analysts expect an average EPS of $5.83 for the current fiscal year.
Additionally, the company announced a quarterly dividend of $0.58 per share, scheduled for payment on December 23. Shareholders of record on December 2 will be eligible for this dividend, which represents an annualized yield of 1.2% and a dividend payout ratio of 35.26%.
Insider Activity and Institutional Investments
In recent insider trading, Chief Operating Officer Shanon G. Mclachlan sold 227 shares at an average price of $160.83 on November 10, totaling approximately $36,508.41. After this sale, Mclachlan retained 1,420 shares valued around $228,378.60, reflecting a decrease of 13.78% in ownership. Furthermore, Director David B. Foss sold 20,000 shares on December 1 for $174.92 each, amounting to $3,498,400.00. Following this transaction, Foss holds 128,133 shares worth approximately $22,413,024.36, indicating a 13.50% reduction in ownership.
Institutional investors significantly influence the company’s stock, with hedge funds holding 98.75% of the shares. Vanguard Group Inc. has increased its holdings by 0.5% in the second quarter, now owning 8,843,282 shares valued at around $1.59 billion. Kayne Anderson Rudnick Investment Management LLC expanded its stake by 19.1% in the first quarter, while State Street Corp and Geode Capital Management LLC also raised their investments in the company during recent quarters.
Jack Henry & Associates, known for its financial technology solutions and payment processing services, operates through several segments, including Core, Payments, Complementary, and Corporate. The Core segment provides essential information processing platforms to banks and credit unions, facilitating various financial transactions and customer management.
Investors and analysts will closely monitor future developments as the company continues to navigate the financial technology landscape.
