How Bearish Are People Regarding H&R Block, Inc. (HRB)?

Investors will get their next glimpse of HRB’s Q3 earnings on March 07. Analysts are forecasting revenue to suffer decline of -3.7 percent to $470M in the next fiscal quarter, while earnings are seen soaring by nearly -54.31 percent to -$0.53 per share. History has shown that shares in H&R Block, Inc. have gone up on 20 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.83 per share, better than the -$0.93, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $145M, better than the $138M analysts expected. Earnings are estimated to increase by 51.7 percent this year, 4.59 percent next year and continue to increase by 10 percent annually for the next 5 years.

H&R Block, Inc. (HRB) will probably climb 3.24 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $31price as 12-month high target. This represents a whopping 21.09 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $27, which represents a return potential of 5.47 percent when compared to the closing price of the stock of $25.6 on Thursday, January 10. The lowest price target for the stock is $19 — slightly more than -25.78 percent from HRB’s current share price.

The stock is currently hovering around the first support level of $25.4. Below this, the next support is placed in the zone of $25.2. Till the time, the HRB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 46.33 on daily chart, which may remain a cause for concern. If the price breaks below $25.2 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $25.79 mark may result into a pull-back move towards $25.97 level.

On 10th of January, H&R Block, Inc. (NYSE:HRB) shares ended lower after a volatile session. The shares dropped -0.08 points or -0.31 percent at $25.6 with a heavy trade volume of 3.392 million shares. After opening the session at $25.62, the shares went as high as $25.775 and as low as $25.39, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.29 billion and now has 206.5 million shares outstanding. H&R Block, Inc. (HRB) stock has lost -8.18 percent of market value in 21 trading days.

HRB stock has a trailing 3-year beta of 0.23, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.62 a share in the trailing twelve months. The stock’s value has surged 0.91 percent year to date (YTD) against a decline of -3.18 percent in 12 month’s time. The company’s shares still trade -14.12 percent away from its 1-year high of $29.81 and 14.03 percent up from 52-week low of $22.45. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of H&R Block, Inc. (HRB) are trading at a P/E ratio of 10.14 times earnings reported for the past 12 months. The industry HRB operates in has an average P/E of 31.58. Its P/E ratio went as low as 9.29X and as high as 17.25 over the 5-year span. Further, it is sporting a 1.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.74. 46 percent is the gross profit margin for H&R Block, Inc. and operating margin sits at 23.8 percent. Along with this, the net profit margin is 17.9 percent.

Let’s take a look at some insider activity at H&R Block, Inc. (NYSE:HRB) and see the pattern. The earliest insider trade took place on 08/30/2018. Gerke Thomas A parted with a total of 70 thousand shares of company at average share price of $26.54. The total for the sales was set at $1.86 million. After this transaction, the Gen. Counsel & Chief Admin Off account balance stood at 74.74 thousand shares. The stock lost -3.54 percent since that insider sale. On 06/22/2018, Gerard Robert A, Director, purchased 1 thousand shares at a price per share of $23.18. This added 23.18 thousand shares to the insider’s fortune and the stock saw a 10.44 percent rally in value since the news became public. This transaction left 157.58 thousand shares in the Director account.

On 07/18/2017, SVP, Chief Mktg & Strat Off Collins Kathryn M performed a sale transaction worth $88.96 thousand. This sale at $30.35 each has eliminated 2.93 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -15.65 percent decrease since the transaction was reported. The insider now is left with 17.37 thousand shares remaining in the account. Logerwell Kellie J, who performs the VP & Chief Acct Officer job, sold 0.8 thousand shares for $24.57 thousand. The disposal occurred on 07/14/2017 was priced at $30.71 per share. The share price plunged -16.64 percent since the reporting date. Logerwell Kellie J now left with a stake of 4.41 thousand HRB stock worth $112.9 thousand after the insider selling.