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

H&R Block, Inc. (NYSE:HRB) saw a large increase in short interest in the month of November. As of November 15th, there was short interest totalling 11,610,000 shares, an increase of 13.9% from the October 31st total of 10,190,000 shares. Currently, 8.6% of the shares of the company are short sold. Based on an average trading volume of 1,350,000 shares, the short-interest ratio is currently 8.6 days.

H&R Block Price Performance

Shares of NYSE:HRB traded down $0.96 during midday trading on Tuesday, hitting $58.15. The stock had a trading volume of 1,398,212 shares, compared to its average volume of 1,623,893. The company’s 50-day moving average price is $60.66 and its 200-day moving average price is $58.11. The company has a market capitalization of $7.97 billion, a P/E ratio of 14.18, a price-to-earnings-growth ratio of 0.90 and a beta of 0.66. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 16.46. H&R Block has a fifty-two week low of $42.28 and a fifty-two week high of $68.45.

H&R Block (NYSE:HRB) last released its quarterly earnings data on Thursday, November 7th. The company reported ($1.17) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.13) by ($0.04). The company had revenue of $193.81 million for the quarter, compared to analyst estimates of $188.78 million. H&R Block had a negative return on equity of 212.45% and a net margin of 16.19%. During the same quarter in the prior year, the company earned ($1.05) earnings per share. As a group, equities research analysts predict that H&R Block will post 5.27 EPS for the current fiscal year.

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

H&R Block Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 6th. Investors of record on Thursday, December 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 2.58%. The ex-dividend date is Thursday, December 5th. H&R Block’s dividend payout ratio is 36.59%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on HRB. StockNews.com downgraded shares of H&R Block from a “buy” rating to a “hold” rating in a report on Friday, August 16th. Barrington Research restated an “outperform” rating and issued a $70.00 target price on shares of H&R Block in a research report on Friday, November 8th. Finally, The Goldman Sachs Group boosted their target price on shares of H&R Block from $39.00 to $44.00 and gave the company a “sell” rating in a research report on Friday, August 16th.

Insider Activity

In other news, VP Kellie J. Logerwell sold 8,000 shares of H&R Block stock in a transaction dated Monday, September 16th. The shares were sold at an average price of $64.41, for a total value of $515,280.00. Following the completion of the transaction, the vice president now owns 18,474 shares of the company’s stock, valued at $1,189,910.34. This trade represents a 30.22 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On H&R Block

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Charles Schwab Investment Management Inc. increased its position in H&R Block by 5.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 4,936,829 shares of the company’s stock valued at $313,735,000 after acquiring an additional 255,354 shares during the period. Pacer Advisors Inc. increased its position in H&R Block by 52.2% in the 2nd quarter. Pacer Advisors Inc. now owns 2,738,190 shares of the company’s stock valued at $148,492,000 after acquiring an additional 939,270 shares during the period. Dimensional Fund Advisors LP increased its position in H&R Block by 1.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,484,417 shares of the company’s stock valued at $134,726,000 after acquiring an additional 23,792 shares during the period. AQR Capital Management LLC increased its position in H&R Block by 39.7% in the 2nd quarter. AQR Capital Management LLC now owns 2,131,451 shares of the company’s stock valued at $115,418,000 after acquiring an additional 606,250 shares during the period. Finally, Wedge Capital Management L L P NC increased its position in H&R Block by 1,630.9% in the 3rd quarter. Wedge Capital Management L L P NC now owns 777,264 shares of the company’s stock valued at $49,395,000 after acquiring an additional 732,359 shares during the period. 90.14% of the stock is currently owned by institutional investors and hedge funds.

H&R Block Company Profile

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.