Gains May Be On The Menu For H&R Block Inc. (NYSE: HRB)


    Jupiter Asset Management Ltd. recently announced the acquisition of new stake in H&R Block Inc. (NYSE:HRB). The institutional investor has increased its shareholding in the Consumer Cyclical company by 11.53% to 12.71 million shares with purchase of 1.31 million shares. This fresh investment now brings its stake to 6.60% valued currently at $184.29 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.81 million to 10.88 million shares. And PPM America, Inc. has lifted its position by 33.93% or 1.25 million shares – to 4.91 million shares.

    With over 4.51 million H&R Block Inc. (HRB) shares trading Tuesday and a closing price of $14.63 on the day, the dollar volume was approximately $65.94 million. The shares have shown a negative weekly performance of -0.61% and its price on 09/01/20 gained nearly 0.90%. Currently, there are 192.61M common shares owned by the public and among those 191.81M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for HRB have a consensus price objective of $18.17. The analysts have set the share’s price value over the next 12 months at a high of $21.00 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the H&R Block Inc. stock is 2.70 for the next 12 months. The average price target is 19.48% above its last price level and an upside to the estimated low will see the stock lose -21.92% over that period. But an upside of 30.33% will see the stock hit the forecast high price target while mean target price for the stock is $19.50.

    Insiders at the company have transacted a total of 36 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 20 of these insider trades were purchases, accounting for 239,095 shares. Insider sales of the common stock occurred on 16 occasions, with total insider shares sold totaling 55,422 shares.

    The top 3 mutual fund holders in H&R Block Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and Invesco ETF Trust II – S&P 500 Hi. Vanguard Total Stock Market Index owns 5.49 million shares of the company’s stock, all valued at over $79.66 million. The company sold 3430.0 shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard Small Cap Index Fund sold 28359.0 shares to see its total holdings shrink to 4.79 million shares valued at over $69.4 million and representing 2.49% of the shares outstanding. Invesco ETF Trust II – S&P 500 Hi now owns shares totaling to 2.44% of the shares outstanding.

    Shares of H&R Block Inc. (NYSE: HRB) opened at $14.36, down -$0.14 from a prior closing price of $14.50. However, the script later closed the day at $14.63, up 0.90%. The company’s stock has a 5-day price change of -0.61% and -19.04% over the past three months. HRB shares are trading -37.69% year to date (YTD), with the 12-month market performance down to -39.69% lower. It has a 12-month low price of $11.29 and touched a high of $25.44 over the same period. Currently, 4.51 million shares have been traded, compared to an average intraday trading volume of 3.31 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.17%, 0.45%, and -20.55% respectively.

    Institutional ownership of H&R Block Inc. (NYSE: HRB) shares accounts for 98.60% of the company’s 192.61M shares outstanding. Mutual fund holders own 58.35%, while other institutional holders and individual stakeholders account for 8.64% and 39.57% respectively.

    It has a market capitalization of $2.80B and a beta (3y monthly) value of 0.83. The stock’s trailing 12-month PE ratio is 154.00, while the earnings-per-share (ttm) stands at $0.10. The company has a PEG of 15.40 and a Quick Ratio of 2.00 with the debt-to-equity ratio at 49.23. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.61% over the week and 3.64% over the month.

    Analysts forecast that H&R Block Inc. (HRB) will achieve an EPS of -$0.94 for the current quarter, -$0.57 for the next quarter and $2.29 for 2022. The lowest estimate earnings-per-share for the quarter is -$1.05 while analysts give the company a high EPS estimate of -$0.84. Comparatively, EPS for the current quarter was -$0.85 a year ago. Earnings per share for the fiscal year are expected to decrease by -98.70%, and -31.94% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -56.30% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate H&R Block Inc. (HRB) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 6 of the 9 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the HRB, a number of firms have released research notes about the stock. Northcoast stated their Buy rating for the stock in a research note on July 15, 2020, with the firm’s price target at $20. BTIG Research coverage for the H&R Block Inc. (HRB) stock in a research note released on March 13, 2020 offered a Neutral rating with a price target of. Barrington Research was of a view on March 06, 2020 that the stock is Outperform, while Standpoint Research gave the stock Buy rating on February 27, 2020, issuing a price target of. Jefferies on their part issued Hold rating on November 22, 2019.


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