H & R Block (NYSE:HRB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “H&R Block has underperformed the industry in the last three months. Its debt-to-equity ratio compares unfavorably with the sector average. Additionally, the cash position of the company is fluctuating in nature. H&R Block is highly susceptible to cyber attacks including computer viruses, malicious codes, worms, phishing attacks, social engineering, denial of service attacks and other sophisticated attacks. The company also faces huge litigations in connection with its various operating activities. H&R Block is further exposed to employment related lawsuits in various parts of the country and compliance fee litigation in Missouri state and federal courts. Such litigations weigh on investor sentiment and hamper the company’s goodwill. However, H&R Block has made several enhancements to its online digital tax software to improve monetization and conversion.”

A number of other research analysts have also weighed in on the company. BMO Capital Markets restated a “hold” rating and issued a $27.00 price objective on shares of H & R Block in a report on Friday, October 13th. Oppenheimer restated a “hold” rating on shares of H & R Block in a report on Thursday, December 7th. Finally, ValuEngine lowered H & R Block from a “buy” rating to a “hold” rating in a report on Friday, September 22nd. Two analysts have rated the stock with a sell rating, six have issued a hold rating and two have assigned a buy rating to the stock. The stock has an average rating of “Hold” and an average target price of $27.60.

H & R Block (NYSE:HRB) traded down $0.48 during trading on Tuesday, reaching $26.31. 3,029,600 shares of the company were exchanged, compared to its average volume of 2,371,220. H & R Block has a 1 year low of $19.85 and a 1 year high of $31.80. The firm has a market cap of $5,500.00, a PE ratio of 13.92, a P/E/G ratio of 1.25 and a beta of 0.56. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of -3.62.

H & R Block (NYSE:HRB) last announced its quarterly earnings data on Wednesday, December 6th. The company reported ($0.71) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.72) by $0.01. The company had revenue of $140.85 million for the quarter, compared to analyst estimates of $131.24 million. H & R Block had a negative return on equity of 110.06% and a net margin of 12.90%. The firm’s revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.67) EPS. sell-side analysts predict that H & R Block will post 1.95 EPS for the current fiscal year.

A number of hedge funds have recently made changes to their positions in the business. APG Asset Management N.V. raised its holdings in shares of H & R Block by 70.5% during the 3rd quarter. APG Asset Management N.V. now owns 4,066,049 shares of the company’s stock worth $107,669,000 after acquiring an additional 1,681,474 shares during the period. Lord Abbett & CO. LLC raised its holdings in shares of H & R Block by 838.9% during the 2nd quarter. Lord Abbett & CO. LLC now owns 1,459,100 shares of the company’s stock worth $45,101,000 after acquiring an additional 1,303,700 shares during the period. American Century Companies Inc. raised its holdings in shares of H & R Block by 94.4% during the 3rd quarter. American Century Companies Inc. now owns 2,316,675 shares of the company’s stock worth $61,346,000 after acquiring an additional 1,124,910 shares during the period. Wells Fargo & Company MN raised its holdings in shares of H & R Block by 217.3% during the 3rd quarter. Wells Fargo & Company MN now owns 1,374,306 shares of the company’s stock worth $36,392,000 after acquiring an additional 941,182 shares during the period. Finally, Skandinaviska Enskilda Banken AB publ raised its holdings in shares of H & R Block by 422.6% during the 3rd quarter. Skandinaviska Enskilda Banken AB publ now owns 1,128,405 shares of the company’s stock worth $29,880,000 after acquiring an additional 912,500 shares during the period. Institutional investors own 95.04% of the company’s stock.

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H & R Block Company Profile

H&R Block, Inc (H&R Block), through its subsidiaries, provides tax preparation and other services. The Company provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions and other services and products related to income tax return preparation to the general public primarily in the United States, Canada, Australia and their respective territories.

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