H&R Block (NYSE:HRB) Stock Price Target Raised at The Goldman Sachs Group

Key Points

• Goldman Sachs raised its H&R Block price target from $36 to $40 but maintained a Sell rating, implying 21.89% downside from the prior close.
• Analyst views are mixed: the stock has an overall Hold rating and an average price target of $49, with ratings ranging from Buy to Sell.
• Fiscal Q1 revenue rose 10.2% year over year to $224.3 million and slightly beat estimates; the $1.40-per-share loss was also a modest beat, though wider than a year earlier. H&R Block reaffirmed its fiscal 2027 outlook and reported $100 million in share repurchases.

H&R Block (NYSE:HRB - Get Free Report) had its price objective lifted by equities research analysts at The Goldman Sachs Group from $36.00 to $40.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has a "sell" rating on the stock. The Goldman Sachs Group's price objective suggests a potential downside of 21.89% from the company's previous close.

Several other research firms have also commented on HRB. Stephens initiated coverage on H&R Block in a research report on Tuesday, July 28th. They set an "equal weight" rating and a $47.00 price target for the company. Weiss Ratings raised H&R Block from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, October 14th. Barrington Research boosted their price objective on H&R Block from $50.00 to $60.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Finally, Zacks Research lowered H&R Block from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, November 3rd. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $49.00.

H&R Block Stock Performance

Shares of HRB stock opened at $51.21 on Tuesday. The firm's 50 day moving average price is $46.76 and its 200-day moving average price is $39.60. The company has a debt-to-equity ratio of 12.69, a quick ratio of 1.13 and a current ratio of 1.13. H&R Block has a one year low of $28.16 and a one year high of $58.67. The firm has a market cap of $6.27 billion, a P/E ratio of 8.95, a P/E/G ratio of 0.73 and a beta of 0.40.

H&R Block (NYSE:HRB - Get Free Report) last posted its earnings results on Monday, November 9th. The company reported ($1.40) earnings per share for the quarter, beating the consensus estimate of ($1.43) by $0.03. H&R Block had a net margin of 18.59% and a negative return on equity of 214.84%. The firm had revenue of $224.34 million during the quarter, compared to the consensus estimate of $212.28 million. During the same quarter last year, the firm earned ($1.20) EPS. The firm's revenue for the quarter was up 10.2% on a year-over-year basis. As a group, equities research analysts predict that H&R Block will post 6.11 EPS for the current year.

Insider Buying and Selling at H&R Block

In related news, insider Mark J. Darling sold 2,700 shares of the company's stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $40.69, for a total transaction of $109,863.00. Following the sale, the insider directly owned 21,588 shares of the company's stock, valued at $878,415.72. This represents a 11.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.67% of the company's stock.

Hedge Funds Weigh In On H&R Block

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fulcrum Asset Management LLP raised its stake in shares of H&R Block by 853.0% in the third quarter. Fulcrum Asset Management LLP now owns 4,784 shares of the company's stock valued at $194,000 after acquiring an additional 4,282 shares in the last quarter. Parallel Advisors LLC grew its stake in H&R Block by 51.3% during the 3rd quarter. Parallel Advisors LLC now owns 5,053 shares of the company's stock worth $206,000 after purchasing an additional 1,714 shares in the last quarter. Richardson Financial Services Inc. grew its stake in H&R Block by 861.4% during the 3rd quarter. Richardson Financial Services Inc. now owns 673 shares of the company's stock worth $27,000 after purchasing an additional 603 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. purchased a new stake in H&R Block during the 3rd quarter worth about $942,000. Finally, Carolina Wealth Advisors LLC increased its holdings in H&R Block by 2.6% during the 3rd quarter. Carolina Wealth Advisors LLC now owns 60,154 shares of the company's stock worth $2,457,000 after purchasing an additional 1,525 shares during the period. Hedge funds and other institutional investors own 90.14% of the company's stock.

Key Stories Impacting H&R Block

Here are the key news stories impacting H&R Block this week:

• Positive Sentiment: H&R Block reported fiscal Q1 revenue of $224.3 million, up 10.2% year over year and ahead of analysts’ expectations. Its loss of $1.40 per share was also slightly better than the $1.43 consensus estimate. H&R Block Q1 results
• Positive Sentiment: The company declared a quarterly dividend of $0.46 per share, equivalent to $1.84 annually and a yield of about 3.6%. It also said it repurchased $100 million of shares during the quarter. Fiscal 2027 first-quarter results and outlook
• Neutral Sentiment: H&R Block reaffirmed its fiscal 2027 outlook, offering continuity but no new forecast boost to counter concerns about the quarterly loss. Fiscal 2027 outlook
• Negative Sentiment: The quarter’s loss widened from $1.20 per share a year earlier to $1.40, a likely concern despite the modest beat versus estimates. This may help explain the stock’s decline as investors weigh weak seasonal profitability against revenue growth. H&R Block posts higher revenue and wider loss

H&R Block Company Profile

H&R Block, Inc provides tax preparation and related financial services to individuals and small businesses. Its offerings include in-person tax preparation, online do-it-yourself filing, virtual tax assistance, and tax software, along with bookkeeping and other small-business services through its Block Advisors and Wave brands.

Founded in 1955 in Kansas City, Missouri, by brothers Henry and Richard Bloch, the company grew from a local tax preparation business into a provider of tax services through offices and digital channels.

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