H&R Block (NYSE:HRB) Shares Climb 3.6% - Here's What Happened

Key Points

• H&R Block shares rose 3.6% to about $45.39, although trading volume was 92% below the average session volume.
• Analyst sentiment remains mixed, with an overall “Hold” rating and a consensus price target of $46.67; targets range from $33 to $60.
• The company beat quarterly earnings and revenue estimates, while raising its quarterly dividend to $0.46 per share, implying a 4.0% annual yield.

Shares of H&R Block, Inc. (NYSE:HRB - Get Free Report) were up 3.6% on Wednesday. The company traded as high as $45.22 and last traded at $45.3940. 179,343 shares were traded during mid-day trading, a decline of 92% from the average session volume of 2,321,110 shares. The stock had previously closed at $43.83.

Analysts Set New Price Targets

Several analysts have recently commented on the company. 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. Zacks Research upgraded H&R Block from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 5th. Barrington Research boosted their price target on H&R Block from $50.00 to $60.00 and gave the company an "outperform" rating in a research note on Wednesday, August 12th. Weiss Ratings reissued a "hold (c)" rating on shares of H&R Block in a report on Tuesday, September 29th. Finally, The Goldman Sachs Group raised their price objective on H&R Block from $29.00 to $33.00 and gave the stock a "sell" rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $46.67.

H&R Block Stock Up 4.1%

The company has a market capitalization of $5.59 billion, a PE ratio of 7.96, a price-to-earnings-growth ratio of 0.58 and a beta of 0.38. The firm has a 50-day moving average of $47.02 and a two-hundred day moving average of $40.28. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 12.69.

H&R Block (NYSE:HRB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same quarter in the previous year, the business earned $2.27 EPS. The company's quarterly revenue was up 255.5% compared to the same quarter last year. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. Equities research analysts predict that H&R Block, Inc. will post 6.11 earnings per share for the current fiscal year.

H&R Block Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 6th. Stockholders of record on Thursday, September 3rd were given a dividend of $0.46 per share. This is a boost from H&R Block's previous quarterly dividend of $0.42. This represents a $1.84 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend was Thursday, September 3rd. H&R Block's dividend payout ratio is presently 32.17%.

Insider Buying and Selling at H&R Block

In related news, insider Mark J. Darling sold 2,700 shares of the business's stock in a transaction 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 transaction, the insider owned 21,588 shares in the company, valued at approximately $878,415.72. The trade was a 11.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.67% of the company's stock.

Hedge Funds Weigh In On H&R Block

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HRB. Elevation Wealth Partners LLC boosted its stake in H&R Block by 34.5% in the second quarter. Elevation Wealth Partners LLC now owns 1,040 shares of the company's stock worth $40,000 after buying an additional 267 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in shares of H&R Block by 54.0% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 895 shares of the company's stock worth $34,000 after acquiring an additional 314 shares in the last quarter. First Citizens Bank & Trust Co. raised its stake in shares of H&R Block by 1.4% during the first quarter. First Citizens Bank & Trust Co. now owns 27,805 shares of the company's stock worth $883,000 after acquiring an additional 387 shares in the last quarter. Bogart Wealth LLC lifted its holdings in shares of H&R Block by 51.4% in the 1st quarter. Bogart Wealth LLC now owns 1,311 shares of the company's stock worth $42,000 after acquiring an additional 445 shares during the last quarter. Finally, State of Michigan Retirement System lifted its holdings in shares of H&R Block by 2.0% in the 1st quarter. State of Michigan Retirement System now owns 30,468 shares of the company's stock worth $967,000 after acquiring an additional 600 shares during the last quarter. 90.14% of the stock is owned by institutional investors and hedge funds.

H&R Block Company Profile

H&R Block, Inc is a tax preparation and financial services company that helps individuals and small businesses manage tax filing and related financial needs. Its services are delivered through company-owned and franchise offices, online platforms and tax-preparation software, providing both assisted and do-it-yourself filing options.

The company offers federal, state and local tax preparation, tax planning and related support, along with products and services such as refund-related financial solutions, tax identity protection and small-business assistance.

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