H&R Block Stock Pops on Beat-and-Raise

The stock is now moving back toward its recent highs

Deputy Editor
May 11, 2022 at 10:27 AM
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The shares of H&R Block Inc (NYSE:HRB) are surging today, after the company announced fiscal third-quarter earnings of $4.11 per share on revenue of $2.06 billion -- higher than analysts' anticipated $3.75 per share and $1.94 billion. Plus, the tax services name raised its full-year outlook. At last glance, HRB was up 14.6% to trade at $27.75. 

Before today's positive price action, H&R Block stock consistently moved lower from its April 25 peak of $28.50 -- its highest level since July 2019. Now on its way back toward those highs, the stock is up roughly 13% year-to-date. It's also worth noting that the equity was due for a short-term bounce, per its relative strength index (RSI) of 9.7, which sits firmly in "oversold" territory.

Over in the options pits, traders have been much more bullish than usual. HRB's 10-day call/put volume ratio of 12.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 91% of readings from the past year.

Today, call traders are keeping up that momentum, with call volume running at eight times the intraday average. The July 28-strike call is the most popular, with new positions being bought to open there.  

It's also worth noting that HRB sports plenty of short-covering potential. Though short interest has started to unwind, it still represents 7.1% of the stock's available float. 

 

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