Insider Trading Report: H&R Block (HRB)

Richard Johnson, a director at H&R Block (HRB), recently picked up 10,000 shares. The buy increased his stake by 17 percent, and came to a total cost just over $395,000.

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  • The buy came about a week after a different director picked up 500 shares, paying just over $16,000. Company insiders were largely sellers of shares in 2022, when the share price was closer to the $50 range rather than the $30 range today.

    Overall, company insiders own about 0.9 percent of shares.

    The tax preparation services company is down 15 percent over the past year.

    Shares have been under pressure recently on news that the IRS is working on software to allow taxpayers to file online, which could disrupt a major source of H&R Block’s business.

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  • Despite that recent slide, shares look attractive at less than 8 times forward earnings, although the company’s business is highly cyclical around tax season.

    Action to take: Shares are currently trending lower, so there’s no rush to buy. Even with the stock now paying a dividend yield near 4 percent, there’s a potential for a move lower in the coming months before there’s clarity on a new tax filing software and alternatives to H&R’s business model.

    For traders, playing the current downtrend should prove profitable. The October $25 puts, last going for about $1.00, can likely see mid-double-digit gains before expiration.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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