/Jack%20Henry%20%26%20Associates%2C%20Inc_%20logo%20on%20smart%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Based in Monett, Missouri, Jack Henry & Associates, Inc. (JKHY) caters mainly to community banks and credit unions by offering technology solutions and payment processing services. Valued at a market cap of $12.5 billion, the company provides transaction processing, business process automation, secure payment processing, and information management services.
Shares of payment processing company have underperformed the broader market over the past 52 weeks. JKHY has gained 9.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25%. In 2024, shares of JKHY are up 5.4%, compared to SPX’s 17.8% gain on a YTD basis.
Zooming in further, JKHY has also lagged behind the S&P Technology Dividend Aristocrats ETF’s (TDV) 14% gain over the past 52 weeks and 8.8% return on a YTD basis.
JKHY dipped following its Q4 earnings release on Aug. 20 due to concerns over the company's lower-than-expected growth in services and support revenue. Additionally, despite a 4.7% revenue rise to $559.9 million and a forecasted 2025 profit per share above estimates, the company’s cautious outlook in an uncertain economic environment led to investor concern.
However, for the current fiscal year, ending in June 2025, analysts expect JKHY’s EPS to grow 10.7% year over year to $5.79. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
The configuration is more bullish than three months ago, with four analysts suggesting a “Strong Buy.”
On Aug. 22, BofA Securities maintained a “Buy” rating on Jack Henry & Associates and raised the price target to $205 - the Street-high price target, noting the company’s solid earnings outlook. This implies a potential upside of 19.3% from the current price.
The mean price target of $180.54 represents a premium of just 5% to JKHY’s current levels.
On the date of publication, Sohini Mondal 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.
