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Monett, Missouri-based Jack Henry & Associates, Inc. (JKHY) is a fintech company that connects people and financial institutions through technology solutions and payment processing services that reduce the barriers to financial health. With a market cap of $12.7 billion, the company operates through Core, Payments, Complementary, and Corporate and Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Jack Henry & Associates fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the information technology services industry.
JKHY touched its 52-week high of $178.37 on Feb. 12 and is now trading 2.6% below that peak. JKHY gained 4.4% over the past three months, lagging behind the iShares U.S. Tech Independence Focused ETF’s (IETC) 6.1% gains during the same time frame.
Over the longer term, JKHY has gained 6.3% in 2024 and 17.5% over the past 52 weeks, underperforming IETC’s 25.6% gains on a YTD basis and 46.2% returns over the past year.
To confirm the bullish trend, JKHY has been trading above its 200-day moving average since late November 2023 and above its 50-day moving average since late August. However, the stock has observed substantial fluctuations.
Shares of Jack Henry & Associates saw a marginal decline in the trading session after the release of its fiscal 2024 earnings on Aug. 20. The company reported a 6.6% annual revenue growth to $2.2 billion, which slightly fell short of Wall Street’s expectations. Its net income grew by 4.1%, totaling $381.8 million. Although the company reported growth in both revenues and profits, its net margin contracted by 41 basis points primarily due to an 18.3% increase in selling, general, and admin expenses to $278.4 million, making investors jittery.
On the brighter side, its cash flows observed a substantial improvement, with its cash flow from operations rising by a massive 48.9% to $568 million. Despite the initial dip in share prices, the stock rebounded in the subsequent trading sessions.
Jack Henry & Associates’ competitor, Fidelity National Information Services, Inc. (FIS), gained 39.9% in 2024 and 49.7% over the past year, outperforming JKHY.
Among the 17 analysts covering the JKHY stock, the consensus rating is a “Moderate Buy.” The mean price target of $181.57 suggests a potential upside of 4.5% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
