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

H&R Block, Inc. (NYSE:HRB) was the target of a large decline in short interest in September. As of September 15th, there was short interest totalling 8,790,000 shares, a decline 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 short-interest ratio is presently 6.9 days. Approximately 6.4% of the shares of the stock are sold short.

H&R Block Trading Down 0.7 %

Shares of HRB stock traded down $0.47 during trading hours on Tuesday, hitting $63.08. 996,331 shares of the company were exchanged, compared to its average volume of 1,167,032. The firm has a fifty day moving average of $61.12 and a 200 day moving average of $54.24. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 16.46. H&R Block has a 1 year low of $39.20 and a 1 year high of $68.45. The firm has a market cap of $8.80 billion, a PE ratio of 14.54, a PEG ratio of 0.98 and a beta of 0.66.

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

H&R Block Increases Dividend

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

H&R Block declared that its board has approved a share repurchase program on Thursday, August 15th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 16.7% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Barrington Research reissued an “outperform” rating and issued a $60.00 price objective on shares of H&R Block in a research report on Wednesday, August 14th. The Goldman Sachs Group boosted 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. Finally, StockNews.com cut H&R Block from a “buy” rating to a “hold” rating in a report on Friday, August 16th.

Insider Buying and Selling

In other H&R Block news, CFO Tony G. Bowen sold 79,259 shares of H&R Block stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $65.17, for a total transaction of $5,165,309.03. Following the completion of the transaction, the chief financial officer now owns 90,095 shares in the company, valued at $5,871,491.15. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In related news, insider Dara S. Redler sold 9,100 shares of the stock in a transaction on Monday, August 19th. The stock was sold at an average price of $64.10, for a total transaction 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 transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Tony G. Bowen sold 79,259 shares of the business’s stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $65.17, for a total transaction of $5,165,309.03. Following the completion of the transaction, the chief financial officer now directly owns 90,095 shares of the company’s stock, valued at approximately $5,871,491.15. The disclosure for this sale can be found here. Insiders have sold 115,927 shares of company stock worth $7,517,056 in the last three months. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On H&R Block

Several hedge funds and other institutional investors have recently modified their holdings of HRB. Mather Group LLC. acquired a new stake in H&R Block during the 1st quarter worth approximately $28,000. Richardson Financial Services Inc. acquired a new stake in shares of H&R Block in the fourth quarter worth $37,000. Versant Capital Management Inc increased its position in shares of H&R Block by 4,152.9% in the second quarter. Versant Capital Management Inc now owns 723 shares of the company’s stock worth $39,000 after acquiring an additional 706 shares in the last quarter. Quest Partners LLC raised its stake in shares of H&R Block by 2,756.0% in the 2nd 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 period. Finally, Assetmark Inc. acquired a new position in shares of H&R Block during the 4th quarter valued at $43,000. 90.14% of the stock is owned by institutional investors and hedge funds.

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.