H&R Block Inc. (NYSE: HRB) stock fell -1.74% on Friday to $44.00 against a previous-day closing price of $44.78. With 1.49 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.82 million shares. During the session, the Personal Services company that operates in wider Consumer Cyclical sector, reached to the highest price of $44.85 whereas the lowest price it dropped to was $43.99. The 52-week range on HRB shows that it touched its highest point at $48.76 and its lowest point at $21.08 during that stretch. It currently has a 1-year price target of $41.40. With its current market cap of 7.05 billion, HRB has annualized dividend of $1.16 while the current yield stands at 2.64%. Beta for the stock currently stands at 0.64.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HRB was down-trending over the past week, with a drop of -2.18%, but this was down by -5.78% over a month. Three-month performance surged to 28.84% while six-month performance rose 71.14%. The stock gained 73.71% in the past year, while it has gained 86.76% so far this year. A look at the trailing 12-month EPS for HRB yields 3.45 with Next year EPS estimates of 3.76. For the next quarter, that number is -0.98. This implies an EPS growth rate of 571.80% for this year and 19.24% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.10%.
Float and Shares Shorts:
At present, 159.63 million HRB shares are outstanding with a float of 157.72 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.69 million, which was 6.07% higher than short shares on Jun 14, 2022. In addition to Mr. Jeffrey J. Jones II as the firm’s Pres, CEO & Director, Mr. Tony G. Bowen serves as its Chief Financial Officer.
Through their ownership of 92.99% of HRB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.29% of HRB, in contrast to 34.91% held by mutual funds. Shares owned by individuals account for 10.79%. As the largest shareholder in HRB with 12.11% of the stake, The Vanguard Group, Inc. holds 19,375,174 shares worth 19,375,174. A second-largest stockholder of HRB, BlackRock Fund Advisors, holds 17,046,087 shares, controlling over 10.66% of the firm’s shares. Jupiter Asset Management Ltd. is the third largest shareholder in HRB, holding 9,197,552 shares or 5.75% stake. With a 2.94% stake in HRB, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,709,625 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.93% of HRB stock, is the second-largest Mutual Fund holder. It holds 4,683,391 shares valued at 210.75 million. iShares Tr. – Select Dividend ETF holds 2.69% of the stake in HRB, owning 4,294,012 shares worth 193.23 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HRB since 5 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HRB analysts setting a high price target of $53.00 and a low target of $22.60, the average target price over the next 12 months is $41.40. Based on these targets, HRB could surge 20.45% to reach the target high and fall by -48.64% to reach the target low. Reaching the average price target will result in a decline of -5.91% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HRB will report FY 2023 earnings on 08/08/2023. Analysts have provided yearly estimates in a range of $3.82 being high and $3.54 being low. For HRB, this leads to a yearly average estimate of $3.76. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. H&R Block Inc. surprised analysts by $0.19 when it reported $1.43 EPS against a consensus estimate of $1.24. The surprise factor in the prior quarter was $0.36. Based on analyst estimates, the high estimate for the next quarter is -$0.83 and the low estimate is -$1.14. The average estimate for the next quarter is thus -$0.98.
Summary of Insider Activity:
Insiders traded HRB stock several times over the past three months with 9 Buys and 20 Sells. In these transactions, 408,516 shares were bought while 283,327 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 20 over the past year. The total number of shares bought during that period was 433,991 while 283,327 shares were sold.