Insider Selling: Stacey E Zengel Unloads $53K Of Jack Henry & Associates Stock

Stacey E Zengel, Senior Vice President at Jack Henry & Associates JKHY, disclosed an insider sell on December 20, according to a recent SEC filing.

What Happened: Zengel opted to sell 326 shares of Jack Henry & Associates, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $53,822.

Jack Henry & Associates shares are trading up 0.34% at $163.38 at the time of this writing on Thursday morning.

All You Need to Know About Jack Henry & Associates

Jack Henry is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing for U.S. banks and credit unions, with a focus on small and midsize banks. Jack Henry serves almost 1,000 banks and over 700 credit unions.

Jack Henry & Associates's Financial Performance

Revenue Growth: Jack Henry & Associates's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 7.97%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 43.47%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Jack Henry & Associates's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.4.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.15.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: Jack Henry & Associates's P/E ratio of 32.9 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 5.61 is above industry norms, reflecting an elevated valuation for Jack Henry & Associates's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 17.74 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Jack Henry & Associates's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.