H&R Block Sees Unusually High Options Volume (NYSE:HRB)

H&R Block, Inc. (NYSE:HRB) was the recipient of some unusual options trading activity on Wednesday. Investors acquired 2,201 call options on the company. This is an increase of 199% compared to the typical daily volume of 736 call options.

H&R Block Trading Up 16.0%

H&R Block stock opened at $54.16 on Thursday. The firm has a market cap of $6.87 billion, a PE ratio of 9.47, a P/E/G ratio of 0.66 and a beta of 0.34. H&R Block has a 12 month low of $28.16 and a 12 month high of $58.67. The stock’s 50 day simple moving average is $40.33 and its two-hundred day simple moving average is $35.82.

H&R Block (NYSE:HRB) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $2.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.21 by $0.17. H&R Block had a net margin of 18.59% and a negative return on equity of 147.59%. The firm had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the prior year, the firm posted $2.27 earnings per share. The firm’s quarterly revenue was up 255.5% compared to the same quarter last year. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. On average, equities research analysts forecast that H&R Block will post 5.65 EPS for the current year.

H&R Block Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 6th. Investors of record on Thursday, September 3rd will be paid a $0.46 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $1.84 dividend on an annualized basis and a yield of 3.4%. This is an increase from H&R Block’s previous quarterly dividend of $0.42. H&R Block’s dividend payout ratio is 29.37%.

Institutional Trading of H&R Block

A number of institutional investors have recently made changes to their positions in HRB. Fuller & Thaler Asset Management Inc. boosted its stake in H&R Block by 4.7% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,285,516 shares of the company’s stock worth $186,763,000 after purchasing an additional 191,608 shares during the last quarter. Boston Partners boosted its position in H&R Block by 20.2% during the third quarter. Boston Partners now owns 3,886,544 shares of the company’s stock worth $196,542,000 after acquiring an additional 652,690 shares during the last quarter. Lazard Asset Management LLC grew its stake in H&R Block by 50.9% during the 1st quarter. Lazard Asset Management LLC now owns 3,761,094 shares of the company’s stock valued at $119,377,000 after acquiring an additional 1,269,064 shares in the last quarter. AQR Capital Management LLC raised its holdings in H&R Block by 31.2% in the 4th quarter. AQR Capital Management LLC now owns 3,402,728 shares of the company’s stock valued at $146,998,000 after acquiring an additional 809,438 shares during the last quarter. Finally, Northern Trust Corp boosted its holdings in shares of H&R Block by 10.9% during the 3rd quarter. Northern Trust Corp now owns 2,750,413 shares of the company’s stock worth $139,088,000 after purchasing an additional 269,581 shares during the last quarter. 90.14% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

HRB has been the topic of several research analyst reports. Weiss Ratings upgraded H&R Block from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, July 2nd. Stephens started coverage on shares of H&R Block in a research report on Tuesday, July 28th. They set an “equal weight” rating and a $47.00 price target for the company. Barrington Research upped their price objective on shares of H&R Block from $50.00 to $60.00 and gave the company an “outperform” rating in a report on Wednesday. The Goldman Sachs Group boosted their target price on shares of H&R Block from $29.00 to $33.00 and gave the company a “sell” rating in a research report on Wednesday. Finally, Zacks Research downgraded H&R Block from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $46.67.

About H&R Block

H&R Block (NYSE: HRB) is a leading provider of tax preparation services and software solutions, serving individual and small-business clients through a combination of retail offices, online platforms and mobile applications. The company offers assisted tax preparation at its network of retail offices, where clients work with trained tax professionals, as well as do-it-yourself (DIY) software and online filing services designed to guide users through the complexities of federal and state tax returns.

Founded in 1955 by brothers Henry W.