H&R Block (NYSE:HRB) hits new 1-year high after strong earnings

H&R Block, Inc. (NYSE:HRB – Get Your Free Report ) hit a new 52-week high during trading on Friday after a stronger-than-expected earnings report. The stock traded as high as $68.24 and last traded at $66.02, with a volume of 742660 shares trading. Shares previously closed at $57.49.

The company reported $1.89 EPS for the quarter, topping the consensus estimate of $1.74 by $0.15. H&R Block had a net margin of 17.87% and a negative return on equity of 224.81%. The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.03 billion. During the same period last year, the firm posted EPS of $2.05. H&R Block’s revenue rose 3.0% year-over-year.

H&R Block raises dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Thursday, September 5th will be paid a dividend of $0.375 per share. This is a boost from H&R Block’s previous quarterly dividend of $0.32. The ex-dividend date is Thursday, September 5. This represents a dividend of $1.50 on an annualized basis and a dividend yield of 2.33%. H&R Block’s dividend payout ratio (DPR) is currently 29.29%.

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

The Wall Street analyst weighs in

A number of research analysts have weighed in on the company. StockNews.com lowered H&R Block from a “buy” rating to a “hold” rating in a report on Friday. Goldman Sachs Group raised their target price on H&R Block from $39.00 to $44.00 and gave the stock a “sell” rating in a report on Friday. Finally, Barrington Research restated an “outperform” rating and issued a $60.00 price objective on shares of H&R Block in a report on Wednesday.

Check out our latest report on H&R Block

Insider activity at H&R Block

In other H&R Block news, CEO Jeffrey J. Jones II sold 44,975 shares of the company’s stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $54.55, for a total value of $2,453,386.25. Following the completion of the sale, the chief executive officer now owns 712,386 shares in the company, valued at $38,860,656.30. The sale was disclosed in a filing with the SEC, which is available at this link. 1.20% of shares are currently held by corporate insiders.

Institutional investors intervene on the H&R block

Large investors have recently modified their stock holdings. Mirae Asset Global Investments Co. Ltd. grew its holdings in H&R Block by 17.2% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 23,258 shares of the company’s stock valued at $1,125,000 after buying an additional 3,405 shares in the last quarter. Cerity Partners LLC grew its stake in H&R Block by 5.8% during the 4th quarter. Cerity Partners LLC now owns 32,501 shares of the company’s stock worth $1,572,000 after buying an additional 1,770 shares in the the last quarter. Simplicity Solutions LLC bought a new position in H&R Block in the 4th quarter worth $343,000. Louisiana State Employees Retirement System acquired a new position in H&R Block during the 4th quarter valued at $1,954,000. Finally, Mackenzie Financial Corp grew its position in H&R Block by 33.7% during the 4th quarter. Mackenzie Financial Corp now owns 122,800 shares of the company’s stock worth $5,940,000 after acquiring an additional 30,959 shares during the period. Hedge funds and other institutional investors own 90.14% of the company’s shares.

H&R Block Price Performance

The firm has a market cap of $8.98 billion, a price-to-earnings ratio of 14.73, a price-to-earnings-growth ratio of 0.96 and a beta of 0.68. The company has a fifty day moving average price of $54.57 and a two hundred day moving average price of $50.59.

About H&R Block

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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. Provides assisted preparation of income tax returns and related services through a system of retail offices operated directly by the company or its franchisees.

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