H&R Block, Inc. (NYSE:HRB) Sees Large Decline in Short Interest

H&R Block, Inc. (NYSE:HRB) saw a significant drop in short interest during the month of September. As of September 15th, there was short interest totalling 8,790,000 shares, a drop of 7.8% from the August 31st total of 9,530,000 shares. Based on an average daily trading volume, of 1,270,000 shares, the days-to-cover ratio is currently 6.9 days. Approximately 6.4% of the company’s shares are sold short.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. StockNews.com downgraded shares of H&R Block from a “buy” rating to a “hold” rating in a research note on Friday, August 16th. Barrington Research restated an “outperform” rating and set a $60.00 price objective on shares of H&R Block in a report on Wednesday, August 14th. Finally, The Goldman Sachs Group lifted their target price on H&R Block from $39.00 to $44.00 and gave the company a “sell” rating in a research report on Friday, August 16th.

H&R Block Stock Down 0.8 %

NYSE:HRB traded down $0.48 during mid-day trading on Tuesday, reaching $63.07. The company’s stock had a trading volume of 996,331 shares, compared to its average volume of 1,167,032. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 16.46. The firm has a market capitalization of $8.80 billion, a PE ratio of 14.54, a price-to-earnings-growth ratio of 0.98 and a beta of 0.66. The stock has a fifty day moving average of $61.12 and a 200-day moving average of $54.24. H&R Block has a 1 year low of $39.20 and a 1 year high of $68.45.

H&R Block (NYSE:HRB) last released its quarterly earnings data on Thursday, August 15th. The company reported $1.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.74 by $0.15. The firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.03 billion. H&R Block had a net margin of 16.49% and a negative return on equity of 220.05%. The company’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period last year, the firm earned $2.05 earnings per share. Equities research analysts forecast that H&R Block will post 5.22 earnings per share for the current year.

H&R Block Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Thursday, September 5th will be given a $0.375 dividend. This represents a $1.50 annualized dividend and a dividend yield of 2.38%. This is a positive change from H&R Block’s previous quarterly dividend of $0.32. The ex-dividend date is Thursday, September 5th. H&R Block’s payout ratio is presently 34.32%.

H&R Block declared that its board has initiated a stock repurchase plan on Thursday, August 15th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 16.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, insider Dara S. Redler sold 9,100 shares of the stock in a transaction on Monday, August 19th. The shares were sold at an average price of $64.10, for a total value of $583,310.00. Following the sale, the insider now owns 22,066 shares of the company’s stock, valued at $1,414,430.60. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other news, VP Kellie J. Logerwell sold 8,000 shares of the business’s stock in a transaction on Monday, September 16th. The shares were sold at an average price of $64.41, for a total transaction of $515,280.00. Following the completion of the sale, the vice president now directly owns 18,474 shares of the company’s stock, valued at $1,189,910.34. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Dara S. Redler sold 9,100 shares of the firm’s stock in a transaction dated Monday, August 19th. The stock was sold at an average price of $64.10, for a total transaction of $583,310.00. Following the completion of the transaction, the insider now directly owns 22,066 shares in the company, valued at approximately $1,414,430.60. The disclosure for this sale can be found here. Insiders sold a total of 115,927 shares of company stock worth $7,517,056 over the last three months. 1.20% of the stock is owned by insiders.

Hedge Funds Weigh In On H&R Block

A number of large investors have recently added to or reduced their stakes in the company. Mather Group LLC. bought a new stake in shares of H&R Block in the 1st quarter valued at about $28,000. Quest Partners LLC lifted its position in H&R Block by 2,756.0% during the second quarter. Quest Partners LLC now owns 714 shares of the company’s stock valued at $39,000 after acquiring an additional 689 shares during the last quarter. Versant Capital Management Inc boosted its stake in H&R Block by 4,152.9% in the second quarter. Versant Capital Management Inc now owns 723 shares of the company’s stock valued at $39,000 after acquiring an additional 706 shares in the last quarter. Richardson Financial Services Inc. purchased a new position in H&R Block in the fourth quarter worth $37,000. Finally, Assetmark Inc. acquired a new position in shares of H&R Block during the fourth quarter worth $43,000. 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.