H&R Block (NYSE:HRB) Shares Gap Down - What's Next?

Shares of H&R Block, Inc. (NYSE:HRB - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $60.35, but opened at $58.34. H&R Block shares last traded at $55.22, with a volume of 354,395 shares traded.

Analyst Upgrades and Downgrades

HRB has been the topic of several research analyst reports. The Goldman Sachs Group lifted 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. StockNews.com lowered H&R Block from a "buy" rating to a "hold" rating in a research note on Friday, August 16th. Finally, Barrington Research reaffirmed an "outperform" rating and issued a $70.00 price target on shares of H&R Block in a research note on Friday, November 8th.

H&R Block Stock Down 8.1 %

The stock has a market capitalization of $7.60 billion, a price-to-earnings ratio of 13.66, a price-to-earnings-growth ratio of 0.91 and a beta of 0.67. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 16.46. The business's 50-day moving average is $61.69 and its two-hundred day moving average is $57.58.

H&R Block (NYSE:HRB - Get Free Report) last issued its earnings results on Thursday, November 7th. The company reported ($1.17) earnings per share for the quarter, missing the consensus estimate of ($1.13) by ($0.04). H&R Block had a negative return on equity of 212.45% and a net margin of 16.19%. The company had revenue of $193.81 million for the quarter, compared to analyst estimates of $188.78 million. During the same quarter in the prior year, the firm earned ($1.05) earnings per share. Equities analysts anticipate that H&R Block, Inc. will post 5.28 EPS for the current year.

H&R Block Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, January 6th. Stockholders of record on Thursday, December 5th will be issued a dividend of $0.375 per share. The ex-dividend date of this dividend is Thursday, December 5th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 2.70%. H&R Block's dividend payout ratio is currently 36.59%.

H&R Block declared that its board has approved a share buyback plan on Thursday, August 15th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 16.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at H&R Block

In other news, CEO Jeffrey J. Jones II sold 9,722 shares of H&R Block stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $63.07, for a total value of $613,166.54. Following the completion of the transaction, the chief executive officer now owns 893,169 shares in the company, valued at approximately $56,332,168.83. This trade represents a 1.08 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Kellie J. Logerwell sold 8,000 shares of the firm's stock in a transaction on Monday, September 16th. The shares were sold at an average price of $64.41, for a total transaction of $515,280.00. Following the completion of the sale, the vice president now owns 18,474 shares in the company, valued at $1,189,910.34. The trade was a 30.22 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Eastern Bank purchased a new stake in H&R Block during the third quarter worth approximately $25,000. Bogart Wealth LLC raised its holdings in H&R Block by 606.1% during the third quarter. Bogart Wealth LLC now owns 466 shares of the company's stock worth $30,000 after purchasing an additional 400 shares in the last quarter. Darwin Wealth Management LLC purchased a new stake in shares of H&R Block during the 3rd quarter worth approximately $34,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of H&R Block in the 3rd quarter valued at $35,000. Finally, Versant Capital Management Inc grew its position in shares of H&R Block by 4,152.9% in the 2nd quarter. Versant Capital Management Inc now owns 723 shares of the company's stock valued at $39,000 after buying an additional 706 shares during the last quarter. 90.14% of the stock is owned by institutional investors and hedge funds.

About H&R Block

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.