H&R Block (NYSE:HRB) Hits New 52-Week Low on Disappointing Earnings

Key Points

• H&R Block's stock hit a new 52-week low at $47.35 after the company reported disappointing earnings of $2.27 per share, missing estimates by $0.54.
• The company announced a dividend increase to $0.42 per share, up from $0.38, with a yield of 3.5%.
• Institutional investors own 90.14% of H&R Block's shares, with significant increases in holdings by firms like Allspring Global Investments and Truist Financial.

H&R Block, Inc. (NYSE:HRB - Get Free Report) reached a new 52-week low on Wednesday following a weaker than expected earnings announcement. The company traded as low as $47.78 and last traded at $47.35, with a volume of 785445 shares. The stock had previously closed at $51.50.

The company reported $2.27 earnings per share for the quarter, missing analysts' consensus estimates of $2.81 by ($0.54). H&R Block had a net margin of 15.20% and a negative return on equity of 179.57%. The firm had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. During the same period in the previous year, the firm posted $1.89 earnings per share. The company's quarterly revenue was up 4.6% compared to the same quarter last year.

H&R Block Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 6th. Shareholders of record on Thursday, September 4th will be paid a dividend of $0.42 per share. 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 3.5%. H&R Block's dividend payout ratio is currently 36.76%.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. The Goldman Sachs Group increased their target price on H&R Block from $49.00 to $54.00 and gave the company a "sell" rating in a report on Thursday, May 8th. Barrington Research reiterated an "outperform" rating and set a $70.00 target price on shares of H&R Block in a report on Friday, April 25th. Wall Street Zen upgraded H&R Block from a "hold" rating to a "buy" rating in a report on Friday, May 9th. Finally, Northcoast Research cut H&R Block from a "buy" rating to a "neutral" rating in a report on Friday, May 2nd.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC raised its position in H&R Block by 98.1% in the first quarter. Allspring Global Investments Holdings LLC now owns 100,601 shares of the company's stock worth $5,667,000 after purchasing an additional 49,827 shares in the last quarter. Truist Financial Corp raised its position in H&R Block by 13.5% in the first quarter. Truist Financial Corp now owns 767,369 shares of the company's stock worth $42,136,000 after purchasing an additional 91,075 shares in the last quarter. Envestnet Asset Management Inc. raised its position in H&R Block by 17.7% in the first quarter. Envestnet Asset Management Inc. now owns 703,672 shares of the company's stock worth $38,639,000 after purchasing an additional 105,973 shares in the last quarter. Asset Management One Co. Ltd. acquired a new position in H&R Block in the first quarter worth about $1,317,000. Finally, Brown Advisory Inc. raised its position in H&R Block by 1.6% in the first quarter. Brown Advisory Inc. now owns 11,942 shares of the company's stock worth $656,000 after purchasing an additional 191 shares in the last quarter. Institutional investors and hedge funds own 90.14% of the company's stock.

H&R Block Price Performance

The stock has a market capitalization of $6.37 billion, a P/E ratio of 11.59, a PEG ratio of 0.85 and a beta of 0.24. The company's 50 day simple moving average is $55.44 and its two-hundred day simple moving average is $55.79.

H&R Block Company Profile

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.

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