Jefferies & Co. Likes H&R Block’s Acquisition of TaxACT (HRB)

By Staff,

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Tax prep company H&R Block, Inc.( HRB ) on Thursday was issued some positive comments from analysts at Jefferies & Co. regarding its recent acquisition of self-preparation software maker TaxACT.

The firm said the acquisition "sends a clear message that HRB intends to continue to compete for share in this market, despite the cannibalization implications for its core store business. The transaction almost doubles HRB's share of digital self-preparation filers, but it is possible that the move could be positive for market pricing dynamics over time."

H&R Block shares fell 29 cents, or -2.1%, in premarket trading Thursday.

The Bottom Line
We had removed shares of HRB from our "recommended" list Oct.6, 2008, when the stock was trading at $23.72. The company has a 4.38% dividend yield, based on last night's closing stock price of $13.69. The stock has technical support in the $12-$14 price area. If the shares can firm up, we see overhead resistance around the $17 price level. We would remain on the sidelines for now.

H&R Block, Inc.( HRB ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: HRB

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