H&R Block (NYSE:HRB) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded H&R Block from “strong buy” to “hold.” Across analysts cited, the stock has an average “hold” rating and an average price target of $46.67.
• H&R Block reported quarterly EPS of $2.38, beating the $2.21 consensus estimate, and revenue of $1.14 billion versus expectations of $1.12 billion.
• Shares opened at $55.35, near their 52-week high of $58.67; institutional investors own 90.14% of the company’s stock.

H&R Block (NYSE:HRB - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday, Zacks reports.

HRB has been the subject of a number of other research reports. Weiss Ratings upgraded shares of H&R Block from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, October 14th. Stephens initiated coverage on H&R Block in a report on Tuesday, July 28th. They issued an "equal weight" rating and a $47.00 price target for the company. The Goldman Sachs Group lifted their price target on H&R Block from $29.00 to $33.00 and gave the company a "sell" rating in a research note on Wednesday, August 12th. Finally, Barrington Research upped their price objective on H&R Block from $50.00 to $60.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $46.67.

H&R Block Price Performance

Shares of HRB opened at $55.35 on Tuesday. The company has a debt-to-equity ratio of 12.69, a quick ratio of 1.13 and a current ratio of 1.13. The business's 50-day moving average is $46.73 and its two-hundred day moving average is $39.42. H&R Block has a fifty-two week low of $28.16 and a fifty-two week high of $58.67. The company has a market capitalization of $6.78 billion, a P/E ratio of 9.68, a P/E/G ratio of 0.70 and a beta of 0.40.

H&R Block (NYSE:HRB - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $2.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.21 by $0.17. The firm had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.12 billion. H&R Block had a net margin of 18.59% and a negative return on equity of 214.84%. The firm's quarterly revenue was up 255.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.27 earnings per share. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. Research analysts predict that H&R Block will post 6.11 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Mark J. Darling sold 2,700 shares of the firm'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 completion of the sale, the insider owned 21,588 shares of the company's stock, valued at approximately $878,415.72. This trade represents a 11.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.67% of the company's stock.

Hedge Funds Weigh In On H&R Block

Several large investors have recently modified their holdings of the stock. Lazard Asset Management LLC lifted its holdings in H&R Block by 50.9% in the first quarter. Lazard Asset Management LLC now owns 3,761,094 shares of the company's stock worth $119,377,000 after purchasing an additional 1,269,064 shares during the period. Bank of New York Mellon Corp lifted its position in H&R Block by 6.8% in the first quarter. Bank of New York Mellon Corp now owns 1,516,885 shares of the company's stock worth $48,146,000 after purchasing an additional 96,928 shares during the period. First Trust Advisors LP boosted its stake in H&R Block by 26.2% during the 1st quarter. First Trust Advisors LP now owns 1,328,584 shares of the company's stock valued at $42,169,000 after purchasing an additional 276,193 shares in the last quarter. Lodge Hill Capital LLC lifted its holdings in shares of H&R Block by 31.2% in the first quarter. Lodge Hill Capital LLC now owns 1,050,000 shares of the company's stock valued at $33,327,000 after buying an additional 250,000 shares during the period. Finally, Pacer Advisors Inc. lifted its holdings in shares of H&R Block by 29.9% in the first quarter. Pacer Advisors Inc. now owns 692,760 shares of the company's stock valued at $21,988,000 after buying an additional 159,369 shares during the period. Institutional investors own 90.14% of the company's stock.

About H&R Block

H&R Block, Inc is a provider of tax preparation and financial services headquartered in Kansas City, Missouri. The company serves individual taxpayers through a network of company-owned and franchise offices, as well as digital platforms that support do-it-yourself tax filing. Its services include federal, state and local tax preparation, tax advice, and assistance with tax-related products and filings.

The company also offers small-business tax preparation and bookkeeping services, payroll support, and related financial products.

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