Should you sell Henry (Jack) & Associates or reduce the position?
Calculate what you would remove, what you would retain, and which assumptions support continuing to own it.
Price as of Oct 19, 2026, 11:15 AM UTC (polygon last daily bar) · Evidence through Sep 10, 2026
What has changed in the case for owning it?
Market Ontology's model values Henry (Jack) & Associates at $140.00 per share against $153.19 (-8.6%). 2 dated developments in the last 45 days reach the position.
| Development | Evidence | Assumption affected | Consequence for the case |
|---|---|---|---|
| Sep 10, 2026 · Jack Henry secures record 58 core banking wins and $8.44B RPO in fiscal 2026 | 1 source | recurring software revenue expansion through 50% faster-payments growth | Supports the case for owning |
| Sep 10, 2026 · Jack Henry expands backlog to $8.44B on 58 core banking platform conversions | 1 source | contractual RPO backlog expansion versus higher cloud R&D costs | Mixed |
What changes if you sell?
| Keep current position | Sell selected quantity | Exit position | |
|---|---|---|---|
| Shares remaining | 100 | 50 | 0 |
| Estimated proceeds after included transaction costs | — | $7,656 | $15,311 |
| Downside case ($92.66) outcome | −$6,053 | −$3,027 | $0 |
| Upside case ($224.36) outcome | $7,117 | $3,559 | $0 |
| Remaining exposure | $15,319 | $7,660 | $0 |
Included costs: an assumed 5 bps for commission and spread. Tax treatment: not calculated; cost basis is not used in this comparison.
Undecided: sale proceeds and remaining exposure are calculated; replacement performance is left unresolved.
What would justify keeping the remaining position?
- Revenue growth (yr 1) holds near -7.17%: Trailing 4-year revenue CAGR of -7.2%, faded toward terminal growth over 5 years.
- Operating margin (steady-state) holds near 24.65%: Anchored to mean operating margin of 24.6% across the last 4 reported periods.
- Discount rate (WACC) holds near 6.1%: CAPM baseline: 5.10% risk-free + β-0.04 × 5.5% ERP = 4.89%.
What would justify investigating it again after an exit?
- Implied revenue growth (next yr → terminal) moves relative to -2.68%: Growth rate that reconciles the current share price to a 5y DCF holding margin, WACC and terminal g fixed.
- Implied steady-state FCF margin moves relative to 24.97%: FCF margin the market needs to justify the current price at modeled growth and WACC.
- The price falls below the downside value of $92.66.
Preserve the reasoning behind the sale.
Save the reduction you're considering, the evidence behind it, and your conditions for reviewing the remaining position. If you exit, keep the research and specify what would justify revisiting JKHY.
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