The Case for and Against H&R Block, Inc. (HRB)

H&R Block, Inc. (HRB) is an interesting player in the Services space, with a focus on Personal Services. The stock has been active on the tape, currently trading at $26.94, up from yesterday’s close by 3.98%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

H&R Block, Inc. (HRB) currently trades with a market capitalization of $5.69 Billion. That value represents a market adjusting for revenues that have been growing by 7.25 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $526.3 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$1.22 on a per share basis this quarter. Perhaps, that suggests something about why 1.54% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, H&R Block, Inc. recorded a 52-week high of $31.80. It is now trading 4.86% off that level. The stock is trading $26.55 its 50-day moving average by -0.39%. The stock carved out a 52-week low down at $19.85.

In recent action, H&R Block, Inc. (HRB) has made a move of +1.74% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.35, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 14.26% with $207.64 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HRB.

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