Should You Avoid Jack Henry & Associates, Inc. (JKHY)?

Jack Henry & Associates, Inc. (NASDAQ:JKHY) investors should be aware of a decrease in activity from the world’s largest hedge funds lately.

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Keeping this in mind, let’s take a peek at the key action encompassing Jack Henry & Associates, Inc. (NASDAQ:JKHY).

What have hedge funds been doing with Jack Henry & Associates, Inc. (NASDAQ:JKHY)?

At Q1’s end, a total of 10 of the hedge funds we track held long positions in this stock, a change of -29% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.

Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the largest position in Jack Henry & Associates, Inc. (NASDAQ:JKHY). Royce & Associates has a $86.5 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is Steven Richman of East Side Capital (RR Partners), with a $34.8 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.

Due to the fact that Jack Henry & Associates, Inc. (NASDAQ:JKHY) has experienced a declination in interest from hedge fund managers, logic holds that there is a sect of money managers that decided to sell off their full holdings heading into Q2. Intriguingly, Matthew Tewksbury’s Stevens Capital Management dropped the biggest investment of the “upper crust” of funds we track, totaling close to $1.3 million in stock., and Neil Chriss of Hutchin Hill Capital was right behind this move, as the fund said goodbye to about $1.1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds heading into Q2.

Insider trading activity in Jack Henry & Associates, Inc. (NASDAQ:JKHY)

Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past six months. Over the last 180-day time frame, Jack Henry & Associates, Inc. (NASDAQ:JKHY) has experienced 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Jack Henry & Associates, Inc. (NASDAQ:JKHY). These stocks are Aspen Technology, Inc. (NASDAQ:AZPN), Tibco Software Inc. (NASDAQ:TIBX), Total System Services, Inc. (NYSE:TSS), Informatica Corporation (NASDAQ:INFA), and Solera Holdings Inc (NYSE:SLH). This group of stocks are the members of the business software & services industry and their market caps resemble JKHY’s market cap.