Stock of the Day

May 22, 2024

Jack Henry & Associates (JKHY)

$156.47
+$1.21 (+0.8%)
Market Cap: $10.89B

About Jack Henry & Associates

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. The Payments segment includes secure payment processing tools and services including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services. The Complementary segment focuses on additional software, hosted processing platforms, and services including call center support, network security management, consulting, and monitoring. The Corporate and Other segment offers hardware and other products. The company was founded by Jerry D. Hall and John W. Henry in 1976 and is headquartered in Monett, MO.

Today's Trend

Jack Henry & Associates, Inc. (NASDAQ: JKHY) shares have recently pulled back, with the stock trading below its 12-month high despite generally favorable analyst ratings. The main factors are mixed analyst sentiment and investor caution following the company’s latest earnings report.

  • Royal Bank of Canada reaffirmed its Outperform rating and set a $178 price target, implying meaningful upside from recent levels. Royal Bank of Canada rating
  • KeyCorp initiated coverage with an Overweight rating and a $190 target. Its forecasts call for $7.18 in FY2027 EPS, increasing to $7.88 in FY2028 and $8.65 in FY2029, supporting a long-term growth case. KeyCorp coverage initiation
  • The latest quarterly results exceeded expectations: Jack Henry reported $1.57 in EPS versus a $1.44 consensus estimate and revenue of $633.1 million versus $631.6 million expected. Revenue increased 4.6% year over year, while management’s FY2027 EPS guidance remains approximately $7.33-$7.38.
  • The analyst/investor day materials and transcript give investors additional information on Jack Henry’s strategy and outlook, but the available reports do not identify a major new catalyst or a material change to guidance. Analyst and investor day slideshow
  • Despite the earnings beat, JKHY is down about 2.5% since its last earnings report. The decline suggests investors may have viewed the growth outlook as insufficient relative to expectations or the stock’s valuation, with earnings growth still moderate. Why Jack Henry is down since earnings
  • Analyst opinion is not unanimous. A report highlighting conflicting views among analysts may be limiting buying interest, even though the published ratings from RBC and KeyCorp remain bullish. Conflicting analyst views
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