H&R Block (NYSE:HRB) Sees Strong Trading Volume Following Strong Earnings

H&R Block, Inc. (NYSE:HRB) saw an uptick in trading volume on Tuesday following a stronger than expected earnings report. Approximately 2,069,396 shares traded hands during mid-day trading, a decline of 13% from the previous session’s volume of 2,383,632 shares.The stock last traded at $45.9960 and had previously closed at $45.93.

The company reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.21 by $0.17. H&R Block had a negative return on equity of 147.59% and a net margin of 18.59%.The firm had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter last year, the firm earned $2.27 EPS. The business’s quarterly revenue was up 255.5% on a year-over-year basis. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS.

H&R Block Increases Dividend

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

More H&R Block News

Here are the key news stories impacting H&R Block this week:

• Positive Sentiment: Quarterly results exceeded expectations. H&R Block reported fiscal fourth-quarter adjusted EPS of $2.38, above the $2.21-$2.23 analyst estimates, while revenue reached $1.14 billion versus expectations near $1.12 billion. Annual revenue grew 5%, and operating cash flow increased 23%. H&R Block Fiscal 2026 Results
• Positive Sentiment: Fiscal 2027 outlook topped consensus. Management forecast adjusted EPS of $6.04-$6.24 and revenue of approximately $4.11-$4.16 billion, ahead of analyst expectations of roughly $5.82 EPS and $4.0 billion in revenue. The company is prioritizing higher-value customers, retention and an AI-enabled expert service model. H&R Block Fiscal 2027 Outlook
• Positive Sentiment: Shareholder returns increased. H&R Block raised its quarterly dividend 9.5% to $0.46 per share, equivalent to an annualized yield of about 3.4%, marking another year of dividend growth. H&R Block Dividend Increase
• Positive Sentiment: Analyst sentiment improved. Barrington Research raised its HRB price target from $50 to $60 and assigned an “outperform” rating, implying additional upside based on the cited reference price. Barrington Research Price Target Update
• Neutral Sentiment: Call-option volume was unusually high, with 2,201 calls purchased versus an average of 736. This signals bullish speculative positioning but does not guarantee continued gains.
• Neutral Sentiment: Institutional positioning was mixed: some major investors added HRB shares while others reduced or exited positions, offering no clear consensus signal.
• Negative Sentiment: The shift toward a more consultative, AI-enabled model requires increased investment, which could raise near-term expenses and execution risk even as management targets stronger long-term growth.

Analysts Set New Price Targets

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

Institutional Trading of H&R Block

Several institutional investors and hedge funds have recently bought and sold shares of HRB. Elevation Wealth Partners LLC raised its position in H&R Block by 34.5% during the second quarter. Elevation Wealth Partners LLC now owns 1,040 shares of the company’s stock valued at $40,000 after acquiring an additional 267 shares in the last quarter. Public Employees Retirement System of Ohio boosted its position in H&R Block by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 46,171 shares of the company’s stock worth $2,335,000 after purchasing an additional 286 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its stake in shares of H&R Block by 1.4% during the 4th quarter. Envestnet Portfolio Solutions Inc. now owns 22,496 shares of the company’s stock worth $980,000 after purchasing an additional 309 shares during the period. Vise Technologies Inc. increased its holdings in shares of H&R Block by 7.4% during the 3rd quarter. Vise Technologies Inc. now owns 4,486 shares of the company’s stock valued at $227,000 after purchasing an additional 311 shares in the last quarter. Finally, MassMutual Private Wealth & Trust FSB increased its holdings in shares of H&R Block by 54.0% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 895 shares of the company’s stock valued at $34,000 after purchasing an additional 314 shares in the last quarter. 90.14% of the stock is currently owned by institutional investors and hedge funds.

H&R Block Stock Performance

The firm’s 50 day moving average is $40.33 and its 200-day moving average is $35.82. The stock has a market capitalization of $6.87 billion, a price-to-earnings ratio of 9.47, a PEG ratio of 0.66 and a beta of 0.34.

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.