Should I Buy JKHY? JKHY 2026 Analysis

Should You Buy Jack Henry & Associates Inc (JKHY) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

173.360

1 Day change

-2.03%

52 Week Range

196.000

Analysis Updated At

2026/02/05

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Buy now (impatient entry): Strong post-earnings momentum + multiple fresh upgrades/raised targets today outweigh the still-soft technicals.
Near-term path: Price is just below the pivot (~178.25); a reclaim of that level increases odds of a push toward ~187.7 (R1).
Key risk to the buy call: Options positioning is put-heavy (defensive) and insiders have been net sellers recently, which can cap upside if sentiment cools.
Influential/political activity: No recent Congress trading data available; no politician activity indicated in the provided dataset.

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock today.

Technical Analysis

Trend/structure: Currently trading below the pivot (178.246) in pre-market (176.29), suggesting the stock is still in a recovery phase rather than a confirmed uptrend.
Momentum (MACD): MACD histogram at -2.03 (below zero) but negatively contracting → bearish momentum is fading (early stabilization sign).
RSI (short-term): RSI_6 at 38.63 → leaning toward oversold/weak momentum, but not a clear reversal signal by itself.
Moving averages: Converging MAs → consolidation; the next decisive move likely comes from a breakout above pivot or a breakdown toward support.
Levels to watch: Support S1 168.78 then S2 162.93; Resistance Pivot 178.25, then R1 187.71 and R2 193.56.
Pattern-based forward view (provided): Similar-pattern stats imply modest upside skew: ~+1.61% (1 week) and +7.27% (1 month).

Options Data

Bearish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Sentiment read-through: Put activity dominates (PCRs > 1), suggesting traders are more defensive/hedging than aggressively bullish.
Activity spike: Today’s options volume is ~426% of the 30-day average, indicating elevated attention around the earnings/upgrades window.
Volatility: 30D IV 26.07 vs historical vol 31.71 (IV below realized), while IV percentile ~66.9 implies IV is higher than typical for the past year distribution—consistent with event-driven demand.
Positioning: Put open interest (892) > call open interest (683) → skew remains cautious despite positive fundamental news.

Technical Summary

Sell

Buy

Positive Catalysts

- Earnings beat (event catalyst): Fiscal 2026 Q2 GAAP EPS $1.72 beat expectations (by $0.29 per news), with revenue $619.33M up 7.9% YoY.
- Profitability acceleration: Operating income up 29.4% to $159M (news), indicating margin/scale benefits.
- Analyst upgrade wave (today): Baird and Stephens upgraded to bullish ratings with $205 targets; Wolfe remains bullish with $220 target.
- Strategic tailwind narrative: Multiple analysts cite share gains / core takeaways, with potential upside from competitor platform consolidation dynamics.
- Flow/support: Hedge funds are reported as net buying, with buying amount up 617% QoQ (strong institutional tailwind).

Neutral/Negative Catalysts

- Insider activity: Reported insiders are selling, with selling amount up 9482% over the last month (can weigh on sentiment).
- Technical confirmation lacking: Price still below pivot and MACD remains negative, so the uptrend isn’t technically “confirmed” yet.
- Options skew defensive: Put-heavy open interest/volume suggests skepticism or hedging despite the earnings beat.
- Macro tape: Pre-market index backdrop is risk-off (SP500 -0.49%), which can reduce follow-through on single-name good news.

Financial Performance

Latest quarter (Fiscal 2026 Q2):
- Revenue: $619.334M, +7.93% YoY
- Net income: $124.668M, +27.41% YoY
- EPS: $1.72, +28.36% YoY
- Gross margin: 43.33%, +3.17% YoY
Growth quality: Earnings and net income are growing materially faster than revenue, pointing to improving operating leverage/margins in the quarter.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Trend (recent weeks → today): Clear shift more bullish with multiple upgrades and target raises, especially after the Q2 beat.
Today’s notable moves (2026-02-05):
- Baird: Upgraded to Outperform (from Neutral), PT $205 (from $200)
- Stephens: Upgraded to Overweight (from Equal Weight), PT $205 (from $200)
Other recent bullish positioning:
- Wolfe: Upgraded to Outperform, PT $220
- Keefe Bruyette: Upgraded to Outperform, PT $215
- Raymond James: Double upgraded to Strong Buy, PT $198
Wall Street pros: Share gains/core takeaways narrative, improved positioning, safe-haven quality, and margin/revenue normalization (7–8% non-GAAP growth thesis).
Wall Street cons/caveats: Some firms remain more neutral (e.g., prior Neutral/Equal Weight notes), with commentary that revenue tailwinds may take time to fully show up.

13 Analyst Rating

Wall Street analysts forecast JKHY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JKHY is 198 USD with a low forecast of 174 USD and a high forecast of 220 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

8 Buy

5 Hold

0 Sell

Moderate Buy

Current: 176.960

Low

174

Averages

198

High

220

Current: 176.960

Low

174

Averages

198

High

220

Morgan Stanley

Equal Weight

maintain

$168 -> $183

AI Analysis

2026-02-05

New

Reason

Morgan Stanley

Price Target

$168 -> $183

AI Analysis

2026-02-05

New

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Jack Henry to $183 from $168 and keeps an Equal Weight rating on the shares. The demand environment and competitive commentary "sound constructive," says the analyst, who is raising core revenue growth estimates in FY27 and FY28 to 6.5% and 7.0% year-over-year, respectively, but sees potential for incremental upside.

Baird

David Koning

Neutral -> Outperform

upgrade

$200 -> $205

2026-02-05

New

Reason

Baird

David Koning

Price Target

$200 -> $205

2026-02-05

New

upgrade

Neutral -> Outperform

Reason

Baird analyst David Koning upgraded Jack Henry to Outperform from Neutral with a price target of $205, up from $200. The company's fiscal Q2 beat n revenue and margins, and its momentum remains strong, the analyst tells investors in a research note. The firm cites Jack Henry's share gains and execution for the upgrade. It sees potential for increased share gains as Fiserv consolidates platforms.

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JKHY Should I Buy

JKHY Should I Buy

Should You Buy Jack Henry & Associates Inc (JKHY) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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