Stock Traders Purchase High Volume of H&R Block Call Options (NYSE:HRB)

H&R Block, Inc. (NYSE:HRB) saw unusually large options trading on Wednesday. Traders acquired 2,201 call options on the company. This is an increase of 199% compared to the average daily volume of 736 call options.

Institutional Trading of H&R Block

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. boosted its position in shares of H&R Block by 4.7% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 4,285,516 shares of the company’s stock worth $186,763,000 after acquiring an additional 191,608 shares during the last quarter. Boston Partners boosted its holdings in shares of H&R Block by 20.2% in the 3rd quarter. Boston Partners now owns 3,886,544 shares of the company’s stock valued at $196,542,000 after purchasing an additional 652,690 shares during the last quarter. Lazard Asset Management LLC grew its stake in shares of H&R Block by 50.9% during the 1st quarter. Lazard Asset Management LLC now owns 3,761,094 shares of the company’s stock valued at $119,377,000 after buying an additional 1,269,064 shares during the period. AQR Capital Management LLC grew its stake in shares of H&R Block by 31.2% during the 4th quarter. AQR Capital Management LLC now owns 3,402,728 shares of the company’s stock valued at $146,998,000 after buying an additional 809,438 shares during the period. Finally, Northern Trust Corp increased its holdings in shares of H&R Block by 10.9% during the 3rd quarter. Northern Trust Corp now owns 2,750,413 shares of the company’s stock worth $139,088,000 after buying an additional 269,581 shares during the last quarter. Hedge funds and other institutional investors own 90.14% of the company’s stock.

H&R Block Stock Performance

H&R Block stock traded up $6.87 during midday trading on Wednesday, reaching $53.54. 2,696,778 shares of the company were exchanged, compared to its average volume of 2,401,085. The company has a market capitalization of $6.79 billion, a price-to-earnings ratio of 9.52, a P/E/G ratio of 0.65 and a beta of 0.34. The firm’s 50-day simple moving average is $40.00 and its 200-day simple moving average is $35.72. H&R Block has a 1 year low of $28.16 and a 1 year high of $58.67.

H&R Block (NYSE:HRB) last released its earnings results on Tuesday, August 11th. The company reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.21 by $0.17. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.12 billion. H&R Block had a net margin of 18.90% and a negative return on equity of 211.62%. The firm’s quarterly revenue was up 255.5% on a year-over-year basis. During the same period in the prior year, the firm earned $2.27 EPS. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. On average, analysts forecast that H&R Block will post 5.18 EPS for the current fiscal year.

H&R Block Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 3.4%. This is a positive change from H&R Block’s previous quarterly dividend of $0.42. The ex-dividend date is Thursday, September 3rd. H&R Block’s payout ratio is 29.89%.

Key Stories Impacting H&R Block

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

• Positive Sentiment: Q4 results exceeded expectations: H&R Block reported fiscal fourth-quarter adjusted EPS of $2.38, above the $2.21 analyst consensus, while revenue reached $1.14 billion versus estimates of $1.12 billion. EPS also increased from $2.27 in the year-ago quarter. H&R Block Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Optimistic fiscal 2027 outlook: Management forecast revenue of approximately $4.11 billion to $4.16 billion and adjusted EPS of $6.04 to $6.24, both above Wall Street expectations. The outlook supports the view that H&R Block can continue growing earnings while expanding its consultative, higher-value client model. H&R Block Fiscal 2027 Outlook
• Positive Sentiment: Shareholder returns improved: The board raised the quarterly dividend 9.5% to $0.46 per share, payable October 6 to shareholders of record September 3. The increase marks the company’s ninth consecutive annual dividend increase and implies a yield of roughly 3.9%, strengthening the stock’s income appeal. H&R Block Reports Fiscal 2026 Results
• Neutral Sentiment: Options activity signals increased speculation: Investors purchased 2,201 HRB call options, nearly three times typical volume. This may reflect bullish positioning following the earnings report, but options activity alone does not establish a fundamental change in the company’s value.
• Negative Sentiment: Execution risks remain: H&R Block plans to invest more in an AI-enabled expert model, client retention and higher-value customers. These initiatives could support longer-term growth, but the additional investment may pressure near-term margins if adoption or retention gains take longer than expected. H&R Block FY2027 Growth Priorities

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Barrington Research restated an “outperform” rating and issued a $50.00 target price on shares of H&R Block in a research note on Monday, April 27th. Stephens assumed coverage on H&R Block in a research report on Tuesday, July 28th. They set an “equal weight” rating and a $47.00 target price on the stock. Weiss Ratings raised H&R Block from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, July 2nd. The Goldman Sachs Group restated a “sell” rating and issued a $33.00 price target on shares of H&R Block in a research report on Wednesday. Finally, Zacks Research downgraded H&R Block from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 27th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $43.33.

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.