Connor Clark & Lunn Investment Management Ltd. has acquired a significant stake in H&R Block, Inc. by purchasing 16,195 shares during the second quarter of 2023. This investment, valued at approximately $889,000, reflects a growing interest from institutional investors in the tax preparation and financial services company.
In addition to Connor Clark & Lunn, several other large investors have recently adjusted their holdings in H&R Block. Notably, Signaturefd LLC increased its stake by 40.0%, bringing its total to 651 shares, worth around $36,000. CWM LLC also raised its holdings by 1.3%, now owning 15,159 shares valued at approximately $832,000. Furthermore, the Louisiana State Employees Retirement System and Bogart Wealth LLC made modest increases to their positions, with the former owning 37,700 shares worth $2,069,000 and the latter owning 866 shares valued at around $48,000.
Institutional investors and hedge funds collectively own 90.14% of H&R Block’s stock, underscoring the company’s appeal in the financial sector.
Insider Transactions and Company Performance
In related news, CEO Jeffrey J. Jones II sold 176,449 shares on November 12, 2023, at an average price of $46.46, totaling approximately $8.2 million. Following this transaction, Jones retains 906,313 shares valued at around $42.1 million, marking a 16.30% reduction in his ownership. This sale was reported to the Securities and Exchange Commission (SEC).
H&R Block’s stock has experienced fluctuations, opening at $44.48 on a recent Wednesday. The company currently has a market capitalization of $5.62 billion, a price-to-earnings (P/E) ratio of 9.95, and a beta of 0.32. Its twelve-month trading range shows a low of $43.11 and a high of $64.62.
On November 6, 2023, H&R Block released its latest earnings report, revealing an earnings per share (EPS) of ($1.20), exceeding analyst expectations of ($1.40) by $0.20. The company generated $203.55 million in revenue, surpassing the anticipated $200.13 million. Compared to the same quarter last year, revenue increased by 5.0%.
Future Outlook and Dividends
Looking ahead, H&R Block has set its fiscal year 2026 guidance at an EPS range of 4.850-5.000. Analysts project an average EPS of 5.25 for the current year, reflecting a positive outlook for the company.
In addition to its performance metrics, H&R Block has announced a quarterly dividend of $0.42, scheduled for payment on January 6, 2024. Shareholders of record on December 4, 2023, will be eligible for this dividend, which represents an annualized amount of $1.68 and a yield of 3.8%. The company’s current dividend payout ratio stands at 37.75%.
Founded on January 25, 1955, by Henry W. Bloch and Richard A. Bloch, H&R Block continues to provide tax return preparation solutions, financial products, and small business services. With its headquarters in Kansas City, Missouri, the company remains a significant player in the financial services industry.
