H & R Block (HRB) Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of H & R Block (NYSE:HRB) from a buy rating to a hold rating in a research report released on Wednesday morning.

According to Zacks, “H&R Block’s third-quarter fiscal 2019 revenues beat the Zacks Consensus Estimate. It’s loss per share (from continuing operations) was wider than expected. The company looks well poised to gain from opportunities offered by growing tax industry in both assisted and DIY channels. The company is also investing in price, technology and operational excellency. H&R Block's strong cash position allows it to pursue opportunities that exhibit true potential and positions it for sustainable clients, revenue and earnings growth. Despite such positives, H&R Block is likely to witness escalation in costs due to plans of investing heavily in technology and operations. Seasonality causes considerable fluctuations in revenues and makes profit forecasting difficult. The company also faces huge litigations in connection with its various operating activities. Shares of the company have declined in the past six months.”

Other analysts have also recently issued reports about the company. ValuEngine cut H & R Block from a hold rating to a sell rating in a research report on Thursday, January 31st. Goldman Sachs Group cut H & R Block from a neutral rating to a sell rating and set a $22.00 price objective on the stock. in a research report on Thursday, January 31st. Finally, Morgan Stanley boosted their price target on H & R Block from $26.00 to $27.00 and gave the stock a hold rating in a research report on Friday, December 7th. Three research analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $24.67.

H & R Block stock opened at $24.35 on Wednesday. The company has a current ratio of 2.10, a quick ratio of 2.04 and a debt-to-equity ratio of 7.79. The company has a market cap of $4.97 billion, a price-to-earnings ratio of 8.17, a PEG ratio of 1.23 and a beta of 0.10. H & R Block has a fifty-two week low of $22.45 and a fifty-two week high of $29.81.

H & R Block (NYSE:HRB) last posted its quarterly earnings data on Thursday, March 7th. The company reported ($0.58) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.55) by ($0.03). The firm had revenue of $468.00 million for the quarter, compared to the consensus estimate of $465.48 million. H & R Block had a net margin of 21.79% and a return on equity of 829.18%. The business’s revenue was down 4.1% compared to the same quarter last year. During the same period in the previous year, the firm posted ($1.16) earnings per share. As a group, analysts forecast that H & R Block will post 1.97 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Monday, April 1st. Stockholders of record on Monday, March 18th will be given a $0.25 dividend. The ex-dividend date of this dividend is Friday, March 15th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.11%. H & R Block’s dividend payout ratio is currently 33.56%.

Several institutional investors and hedge funds have recently modified their holdings of HRB. IMS Capital Management bought a new position in H & R Block in the 3rd quarter valued at approximately $26,000. Enlightenment Research LLC bought a new position in H & R Block in the 4th quarter valued at approximately $38,000. Atlas Capital Advisors LLC bought a new position in H & R Block in the 3rd quarter valued at approximately $122,000. ETF Managers Group LLC lifted its position in H & R Block by 15.8% in the 4th quarter. ETF Managers Group LLC now owns 5,131 shares of the company’s stock valued at $130,000 after acquiring an additional 699 shares in the last quarter. Finally, Quantamental Technologies LLC bought a new position in H & R Block in the 4th quarter valued at approximately $185,000. 96.95% of the stock is currently owned by hedge funds and other institutional investors.

H & R Block Company Profile

H&R Block, Inc, through its subsidiaries, provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions, and other services and products related to income tax return preparation to the general public primarily in the United States, Canada, and Australia. The company offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or by franchisees.

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