H&R Block Inc. (NYSE: HRB) stock jumped 2.95% on Monday to $40.81 against a previous-day closing price of $39.64. With 1.85 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.4 million shares. The 52-week range on HRB shows that it touched its highest point at $45.87 and its lowest point at $28.83 during that stretch. It currently has a 1-year price target of $39.33. With its current market cap of 5.96 billion, HRB has annualized dividend of $1.28 while the current yield stands at 3.14%. Beta for the stock currently stands at 0.64.
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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 up-trending over the past week, with a rise of 2.93%, but this was up by 5.13% over a month. Three-month performance surged to 24.12% while six-month performance rose 18.70%. The stock lost -9.27% in the past year, while it has gained 11.78% so far this year. A look at the trailing 12-month EPS for HRB yields 3.59 with Next year EPS estimates of 4.62. For the next quarter, that number is -1.12. This implies an EPS growth rate of 9.30% for this year and 10.61% 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 10.60%.
Float and Shares Shorts:
At present, 150.43 million HRB shares are outstanding with a float of 145.21 million shares on hand for trading. On Aug 30, 2023, short shares totaled 12.17 million, which was 8.28% higher than short shares on Jul 30, 2023. 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.
Institutional Ownership:
Other institutions hold 60.78% of HRB, in contrast to 34.88% held by mutual funds. Shares owned by individuals account for 11.97%. As the largest shareholder in HRB with 11.46% of the stake, BlackRock Fund Advisors holds 16,842,678 shares worth 16,842,678. A second-largest stockholder of HRB, Fidelity Management & Research Co, holds 16,000,541 shares, controlling over 10.89% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in HRB, holding 15,169,824 shares or 10.32% stake. With a 3.34% stake in HRB, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 4,916,028 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.22% of HRB stock, is the second-largest Mutual Fund holder. It holds 4,729,702 shares valued at 189.09 million. Vanguard Small Cap Index Fund holds 2.70% of the stake in HRB, owning 3,964,864 shares worth 158.52 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, HRB reported revenue of $1.05B and operating income of $311.60M. The EBITDA in the recently reported quarter was $346.79M and diluted EPS was $1.36.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HRB since 0 analysts follow the stock currently. 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 $44.00 and a low target of $32.00, the average target price over the next 12 months is $39.33. Based on these targets, HRB could surge 7.82% to reach the target high and fall by -21.59% to reach the target low. Reaching the average price target will result in a decline of -3.63% 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.
Summary of Insider Activity:
Insiders traded HRB stock several times over the past three months with 3 Buys and 10 Sells. In these transactions, 743,078 shares were bought while 444,176 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 796,434 while 531,512 shares were sold.
