Tax prep company H&R Block, Inc.(
) 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
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.(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
Be sure to visit our complete recommended list of the
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, as well as a detailed explanation of
our ratings system here