The tax preparation services company is looking for a potential buyer to help offset its declining business, which has lost customers for four consecutive years now. H&R Block is the fourth largest tax preparation service in the U.S., holding a market cap of $5.3 billion as of Thursday’s close.
Earlier this month, CEO Bill Cobb commented on the company’s poor year, taking responsibility for H&R Block’s inability to meet certain financial targets. By missing revenues and profits expectations, Cobb missed out on a sizable bonus, and the company was deprived of more than $1.2 million.
Sources close to the matter revealed that H&R Block is getting ready to put itself in the market for $35 a share, marking a 43.3% premium on the current $24.43 price of HRB stock. The company sold banking operations attached to it back in 2012, with the help of Goldman Sachs Group Inc (NYSE:GS).
Six Wall Street analysts have the stock covered for this week, citing a short-term average level of $28.83 for HRB. $33 is the maximum price target for the short term, while $25 is the minimum target for the same.
The consensus recommendation for the stock is a “Buy.”
The Securities and Exchange Commission recently announced that Brown Jeffrey, H&R Block Chief Accounting and Risk Officer sold 16,067 shares of the stock at an average price of $22.86 at the end of June.
HRB stock is up 1.6% Friday.
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