Insider Trading Review: H & R Block Inc (NYSE:HRB)

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H & R Block Inc (NYSE:HRB) insider has recently participated in insider trading activity. Director, Brown Paul J bought 2,500 shares for $59,913 via one transaction Jun 13. Another notable insider trading was done by Macfarlane Gregory J on Dec 29, who is the Chief Financial Officer. The insider Sold 265,778 shares at an average price of $33.51. Moreover, an insider selling of 50,000 shares was carried out by Brown Jeffrey, Chief Accounting and Risk Offi, on Dec 16. Following the transaction, the insider now owns 63,600 shares in total. President, US Tax Product Str Houseworth Jason sold 42,647 shares for $1,378,125 through one transaction Dec 11. Following this sale, this insider’s stake in the company comprises 56,921 shares, priced at $1354150.59 as of Tuesday.

The stock has experienced a total of 8 insider trades in the past three months. These trades include 0 sell activities and 8 buy trades. Furthermore, over the past 12 months, the stock was traded 55 times by insiders. In 20 of these trades, the insider was a seller while an employee of the company was the buyer in just 35 instances.

On June 9, 2016 H & R Block Inc (HRB) released its financial results for the fiscal year ended April 30, 2016. Total revenues decreased $40.5 million, or 1.3%, to just over $3.0 billion, primarily due to lower worldwide client volumes of 4.1%, and the impacts of the divestiture of H&R Block Bank and foreign currency exchange rate fluctuations. This was partially offset by increased pricing and improved form mix in both the assisted and DIY channels as well as improved monetization in DIY. Excluding the impact of the bank divestiture and foreign exchange, total revenues would have increased 0.5%. The company’s net income totaled $374.3 million and adjusted EBITDA from continuing operations was $838.7 million. The company’s adjusted EBITDA margin from continuing operations was 28%. GAAP earnings per share from continuing operations declined $0.22 to $1.53.

“As I said in April, this season’s results are not acceptable,” said Bill Cobb, H&R Block’s president and chief executive officer. “We are ready to move on. Going forward, we are committed to arresting the client decline and ultimately achieving client growth. We are developing aggressive plans for tax season 2017 that we believe will enable us to achieve this objective.”

The company is making strategic changes which it believes will yield positive results in the short- and long-term. Specifically, the company is investing in initiatives aimed at driving client volumes for fiscal year 2017. Such initiatives will be funded through the Company’s previously announced cost reduction efforts. Long term, the company is developing innovative solutions designed to enhance the client experience, regardless of how the client chooses to be served.

“I’m excited about the future for this company and the plans we are working on for next tax season,” said Cobb. “These plans will challenge us to think differently about certain parts of our business, while building on those areas of the business in which we were successful, such as pricing, mix, improved product attach levels, and the successful launch of our new Block Advisors brand. And having divested H&R Block Bank, we’ll execute against those plans with the right capital structure, which reflects the repurchase of 20.5% of our outstanding shares during fiscal 2016 and the 10% increase in our quarterly dividend.”

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