H&R Block Insiders Sold US$9.1m Of Shares Suggesting Hesitancy

Simply Wall St · 10/14 15:34

The fact that multiple H&R Block, Inc. (NYSE:HRB) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for H&R Block

The Last 12 Months Of Insider Transactions At H&R Block

The insider, Tony Bowen, made the biggest insider sale in the last 12 months. That single transaction was for US$5.2m worth of shares at a price of US$65.17 each. So we know that an insider sold shares at around the present share price of US$60.90. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

H&R Block insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:HRB Insider Trading Volume October 14th 2024

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Insiders At H&R Block Have Sold Stock Recently

The last quarter saw substantial insider selling of H&R Block shares. Specifically, insiders ditched US$6.9m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of H&R Block shares, worth about US$62m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About H&R Block Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since H&R Block is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing H&R Block. At Simply Wall St, we found 2 warning signs for H&R Block that deserve your attention before buying any shares.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.