Intech Investment Management LLC Cuts Stock Position in H&R Block, Inc. $HRB

Key Points

• Intech Investment Management LLC sold 69,300 shares of H&R Block, reducing its stake by 38.2% to hold 112,109 shares valued at approximately $6.16 million.
• H&R Block announced a quarterly dividend increase to $0.42 per share, with a dividend yield of 3.2%, up from the previous $0.38 per share.
• The company reported a miss on earnings for the last quarter, with a $2.27 EPS against a consensus estimate of $2.81, despite a 4.6% revenue increase year-over-year.

Intech Investment Management LLC reduced its stake in H&R Block, Inc. (NYSE:HRB - Free Report) by 38.2% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 112,109 shares of the company's stock after selling 69,300 shares during the quarter. Intech Investment Management LLC owned about 0.08% of H&R Block worth $6,156,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Northern Trust Corp lifted its stake in shares of H&R Block by 11.2% in the first quarter. Northern Trust Corp now owns 2,608,496 shares of the company's stock worth $143,233,000 after acquiring an additional 263,274 shares during the period. Wellington Management Group LLP increased its holdings in H&R Block by 5.9% in the first quarter. Wellington Management Group LLP now owns 2,141,988 shares of the company's stock worth $117,617,000 after purchasing an additional 119,510 shares in the last quarter. LSV Asset Management increased its holdings in H&R Block by 14.3% in the first quarter. LSV Asset Management now owns 1,667,652 shares of the company's stock worth $91,571,000 after purchasing an additional 209,019 shares in the last quarter. Royal Bank of Canada increased its holdings in H&R Block by 0.9% in the first quarter. Royal Bank of Canada now owns 1,244,858 shares of the company's stock worth $68,356,000 after purchasing an additional 10,671 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD increased its holdings in H&R Block by 1.0% in the first quarter. Price T Rowe Associates Inc. MD now owns 976,797 shares of the company's stock worth $53,637,000 after purchasing an additional 9,428 shares in the last quarter. 90.14% of the stock is owned by institutional investors and hedge funds.

H&R Block Stock Down 2.3%

Shares of NYSE:HRB traded down $1.16 during mid-day trading on Monday, hitting $50.07. 1,585,255 shares of the company traded hands, compared to its average volume of 1,542,488. The stock has a market cap of $6.71 billion, a P/E ratio of 11.20, a P/E/G ratio of 0.83 and a beta of 0.26. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 12.86. H&R Block, Inc. has a 12-month low of $47.00 and a 12-month high of $64.90. The stock has a 50-day moving average price of $53.26 and a two-hundred day moving average price of $55.39.

H&R Block (NYSE:HRB - Get Free Report) last announced its earnings results on Tuesday, August 12th. The company reported $2.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.81 by ($0.54). The company had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.07 billion. H&R Block had a net margin of 16.11% and a negative return on equity of 191.38%. The firm's quarterly revenue was up 4.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.89 EPS. H&R Block has set its FY 2026 guidance at 4.850-5.000 EPS. On average, equities research analysts forecast that H&R Block, Inc. will post 5.25 earnings per share for the current year.

H&R Block Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 6th. Shareholders of record on Thursday, September 4th will be given a $0.42 dividend. This is an increase from H&R Block's previous quarterly dividend of $0.38. This represents a $1.68 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend is Thursday, September 4th. H&R Block's payout ratio is presently 37.58%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on HRB. Zacks Research downgraded H&R Block from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Barrington Research decreased their price objective on H&R Block from $70.00 to $62.00 and set an "outperform" rating for the company in a report on Wednesday, August 13th. Finally, The Goldman Sachs Group decreased their price objective on H&R Block from $54.00 to $48.00 and set a "sell" rating for the company in a report on Wednesday, August 13th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, H&R Block currently has an average rating of "Hold" and an average price target of $55.00.

About H&R Block

H&R Block, Inc engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.