H&R Block (NYSE:HRB) Downgraded by Zacks Research to Hold

Zacks Research cut shares of H&R Block (NYSE:HRB) from a strong-buy rating to a hold rating in a report issued on Monday,Zacks.com reports.

Several other equities analysts have also commented on the stock. Stephens started coverage on shares of H&R Block in a research note on Tuesday. They issued an “equal weight” rating and a $47.00 price target on the stock. Barrington Research restated an “outperform” rating and issued a $50.00 target price on shares of H&R Block in a report on Monday, April 27th. Finally, Weiss Ratings raised shares of H&R Block from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $43.00.

H&R Block Stock Performance

NYSE:HRB opened at $44.99 on Monday. The stock has a 50-day simple moving average of $38.62 and a 200-day simple moving average of $35.50. The stock has a market cap of $5.70 billion, a P/E ratio of 8.01, a P/E/G ratio of 0.60 and a beta of 0.36. H&R Block has a 1 year low of $28.16 and a 1 year high of $55.95.

H&R Block (NYSE:HRB) last issued its earnings results on Wednesday, May 6th. The company reported $6.02 earnings per share for the quarter, topping the consensus estimate of $5.77 by $0.25. H&R Block had a negative return on equity of 211.62% and a net margin of 18.90%.The business had revenue of $2.40 billion for the quarter, compared to analyst estimates of $2.34 billion. During the same quarter last year, the company earned $5.38 EPS. The business’s quarterly revenue was up 5.3% on a year-over-year basis. H&R Block has set its FY 2026 guidance at 5.100-5.20 EPS. On average, equities research analysts predict that H&R Block will post 5.18 EPS for the current year.

H&R Block Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Wednesday, June 3rd were given a $0.42 dividend. The ex-dividend date of this dividend was Wednesday, June 3rd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 3.7%. H&R Block’s dividend payout ratio is 29.89%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in HRB. Handelsbanken Fonder AB lifted its stake in H&R Block by 8.1% in the second quarter. Handelsbanken Fonder AB now owns 37,500 shares of the company’s stock valued at $1,428,000 after buying an additional 2,800 shares during the last quarter. Carolina Wealth Advisors LLC grew its position in shares of H&R Block by 14.3% during the second quarter. Carolina Wealth Advisors LLC now owns 58,629 shares of the company’s stock worth $2,233,000 after acquiring an additional 7,326 shares during the last quarter. Affinity Capital Advisors LLC grew its position in shares of H&R Block by 62.8% during the second quarter. Affinity Capital Advisors LLC now owns 12,094 shares of the company’s stock worth $474,000 after acquiring an additional 4,666 shares during the last quarter. Elevation Wealth Partners LLC increased its holdings in shares of H&R Block by 34.5% in the 2nd 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 during the period. Finally, Assenagon Asset Management S.A. acquired a new position in shares of H&R Block in the 2nd quarter valued at $4,455,000. Institutional investors and hedge funds own 90.14% of the company’s stock.

H&R Block News Roundup

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

• Positive Sentiment: Recent coverage highlighted H&R Block’s 115% five-year share-price gain while arguing that the stock could remain below fair value based on valuation metrics. This supports the bullish case, although other analysts believe the recent rally has brought the shares closer to fair value. H&R Block Stock Looks Below Fair Value After A 115% Five Year Run
• Positive Sentiment: The company’s most recent quarterly results exceeded expectations, with revenue up 5.3% year over year and EPS of $6.02 versus a $5.77 consensus estimate. The earnings track record and projected fiscal 2026 EPS of approximately $5.10 to $5.20 remain supportive of the investment case.
• Neutral Sentiment: H&R Block will release fourth-quarter and full-year fiscal 2026 results after the market closes on August 11. The announcement gives investors a near-term catalyst, with guidance, tax-season volumes and capital returns likely to influence the next move. H&R Block to Release Fiscal 2026 Results on August 11, 2026
• Negative Sentiment: Zacks Research downgraded HRB from “strong buy” to “hold,” while Stephens initiated or reiterated a neutral stance, assigning an equal-weight/hold rating and a $47 price target. The limited implied upside suggests analysts see less near-term appreciation after the rally.
• Negative Sentiment: Additional analysis questioned whether H&R Block is already fully valued, reinforcing concerns that the stock’s recent advance may have outpaced analysts’ fair-value estimates. Is H&R Block Fully Valued As Analysts See Fair Value Below Its Recent Price?

H&R Block Company Profile

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.