H&R Block (NYSE:HRB) Trading Down 2.9% After Insider Selling

H&R Block, Inc. (NYSE:HRB)’s stock price fell 2.9% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $64.64 and last traded at $64.64. 169,828 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 1,135,533 shares. The stock had previously closed at $66.60.

Specifically, CFO Tony G. Bowen sold 79,259 shares of H&R Block stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $65.17, for a total value of $5,165,309.03. Following the completion of the transaction, the chief financial officer now owns 90,095 shares of the company’s stock, valued at approximately $5,871,491.15. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Kellie J. Logerwell sold 9,846 shares of the stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $65.00, for a total transaction of $639,990.00. Following the sale, the vice president now directly owns 25,028 shares in the company, valued at $1,626,820. The disclosure for this sale can be found here. In other H&R Block news, insider Dara S. Redler sold 9,100 shares of the firm’s stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $64.10, for a total transaction of $583,310.00. Following the completion of the sale, the insider now directly owns 22,066 shares in the company, valued at approximately $1,414,430.60. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

HRB has been the topic of a number of recent analyst reports. StockNews.com downgraded shares of H&R Block from a “buy” rating to a “hold” rating in a research report on Friday, August 16th. Barrington Research reiterated an “outperform” rating and set a $60.00 target price on shares of H&R Block in a research note on Wednesday, August 14th. Finally, The Goldman Sachs Group upped their price target on H&R Block from $39.00 to $44.00 and gave the company a “sell” rating in a report on Friday, August 16th.

H&R Block Price Performance

The business’s 50 day moving average price is $55.49 and its 200 day moving average price is $51.03. The stock has a market capitalization of $9.04 billion, a P/E ratio of 15.05, a price-to-earnings-growth ratio of 0.96 and a beta of 0.68.

H&R Block (NYSE:HRB) last posted its earnings results on Thursday, August 15th. The company reported $1.89 EPS for the quarter, topping analysts’ consensus estimates of $1.74 by $0.15. The business had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.03 billion. H&R Block had a net margin of 17.87% and a negative return on equity of 224.81%. The firm’s revenue was up 3.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.05 EPS. As a group, analysts forecast that H&R Block, Inc. will post 4.29 earnings per share for the current fiscal year.

H&R Block Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 3rd. Shareholders of record on Thursday, September 5th will be issued a $0.375 dividend. This is an increase from H&R Block’s previous quarterly dividend of $0.32. The ex-dividend date of this dividend is Thursday, September 5th. This represents a $1.50 dividend on an annualized basis and a yield of 2.31%. H&R Block’s dividend payout ratio is currently 34.32%.

H&R Block announced that its Board of Directors has initiated a stock repurchase plan on Thursday, August 15th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the company to purchase up to 16.7% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in HRB. Lazard Asset Management LLC increased its stake in shares of H&R Block by 11.8% in the 1st quarter. Lazard Asset Management LLC now owns 5,295,911 shares of the company’s stock worth $260,081,000 after purchasing an additional 558,076 shares in the last quarter. Boston Partners grew its holdings in H&R Block by 30.2% during the first quarter. Boston Partners now owns 3,270,919 shares of the company’s stock valued at $160,614,000 after purchasing an additional 758,827 shares during the period. Pacer Advisors Inc. increased its position in H&R Block by 52.2% in the second quarter. Pacer Advisors Inc. now owns 2,738,190 shares of the company’s stock worth $148,492,000 after buying an additional 939,270 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of H&R Block by 1.0% in the second quarter. Dimensional Fund Advisors LP now owns 2,484,417 shares of the company’s stock worth $134,726,000 after buying an additional 23,792 shares during the period. Finally, AQR Capital Management LLC lifted its position in shares of H&R Block by 39.7% during the 2nd quarter. AQR Capital Management LLC now owns 2,131,451 shares of the company’s stock valued at $115,418,000 after buying an additional 606,250 shares in the last quarter. 90.14% of the stock is currently owned by institutional investors.

About H&R Block

H&R Block, Inc, through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. It offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or its franchisees.