Sumitomo Mitsui Trust Group Inc. Acquires 23,051 Shares of H&R Block, Inc. $HRB

Key Points

• Sumitomo Mitsui Trust Group acquired 23,051 H&R Block shares in the third quarter, worth approximately $942,000. Institutional investors and hedge funds collectively own 90.14% of the company’s stock.
• H&R Block reported quarterly EPS of $2.38, beating estimates of $2.21, while revenue rose 255.5% year over year to $1.14 billion. The company raised its quarterly dividend from $0.42 to $0.46 per share.
• Analysts’ consensus rating is Hold, with an average price target of $46.67; individual ratings ranged from Sell to Buy.

Sumitomo Mitsui Trust Group Inc. acquired a new stake in H&R Block, Inc. (NYSE:HRB - Free Report) in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 23,051 shares of the company's stock, valued at approximately $942,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Cygnus Capital Advisors LLC purchased a new stake in H&R Block in the 2nd quarter valued at about $1,853,000. Amundi lifted its holdings in shares of H&R Block by 2,344.4% during the 1st quarter. Amundi now owns 229,207 shares of the company's stock worth $7,275,000 after acquiring an additional 219,830 shares during the period. Kendall Capital Management purchased a new position in shares of H&R Block during the 2nd quarter worth about $2,018,000. Ceera Investments LLC lifted its holdings in shares of H&R Block by 299.1% during the 1st quarter. Ceera Investments LLC now owns 42,228 shares of the company's stock worth $1,340,000 after acquiring an additional 31,648 shares during the period. Finally, First Trust Advisors LP boosted its position in shares of H&R Block by 26.2% in the first quarter. First Trust Advisors LP now owns 1,328,584 shares of the company's stock worth $42,169,000 after acquiring an additional 276,193 shares during the last quarter. 90.14% of the stock is currently owned by institutional investors and hedge funds.

H&R Block Stock Performance

NYSE HRB opened at $52.74 on Monday. The firm has a market capitalization of $6.46 billion, a P/E ratio of 9.22, a P/E/G ratio of 0.69 and a beta of 0.40. H&R Block, Inc. has a 1-year low of $28.16 and a 1-year high of $58.67. The company has a debt-to-equity ratio of 12.69, a current ratio of 1.13 and a quick ratio of 1.13. The business's 50-day simple moving average is $46.79 and its 200-day simple moving average is $39.55.

H&R Block (NYSE:HRB - Get Free Report) last issued its 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. H&R Block had a negative return on equity of 214.84% and a net margin of 18.59%. The business had revenue of $1.14 billion during the quarter, compared to analysts' expectations of $1.12 billion. During the same quarter in the previous year, the business earned $2.27 EPS. The company's revenue for the quarter was up 255.5% on a year-over-year basis. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. Equities analysts predict that H&R Block, Inc. will post 6.11 EPS for the current year.

H&R Block Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 6th. Shareholders of record on Thursday, September 3rd were paid a dividend of $0.46 per share. This is an increase from H&R Block's previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a yield of 3.5%. The ex-dividend date was Thursday, September 3rd. H&R Block's payout ratio is presently 32.17%.

Insider Activity

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

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on HRB shares. 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. Barrington Research increased their price target on shares of H&R Block from $50.00 to $60.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Zacks Research lowered shares of H&R Block from a "strong-buy" rating to a "hold" rating in a report on Tuesday, November 3rd. The Goldman Sachs Group boosted their price objective on shares of 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, Stephens began coverage on H&R Block in a report on Tuesday, July 28th. They set an "equal weight" rating and a $47.00 price objective for the company. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, H&R Block has an average rating of "Hold" and an average price target of $46.67.

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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