According to an SEC filing dated April 27, 2026, Prevatt Capital Ltd increased its holding in H&R Block (NYSE:HRB) by 360,000 shares during the first quarter of 2026.
The estimated transaction value was $12.55 million, calculated using the mean unadjusted closing price for the quarter. The quarter-end value of the position increased by $7.28 million, reflecting both new purchases and stock price changes.
H&R Block operates a large-scale tax preparation business with a diversified service portfolio, leveraging both company-owned and franchised retail locations as well as digital platforms. The company’s strategy centers on providing accessible tax solutions and value-added financial products to a broad customer base.
H&R Block delivers tax preparation and financial services to individuals and small businesses across North America and Australia.
What happened
According to an SEC filing dated April 27, 2026, Prevatt Capital Ltd increased its holding in H&R Block (HRB +3.88%) by 360,000 shares during the first quarter of 2026.
The estimated transaction value was $12.55 million, calculated using the mean unadjusted closing price for the quarter. The quarter-end value of the position increased by $7.28 million, reflecting both new purchases and stock price changes.
What else to know
- Prevatt Capital Ltd bought more H&R Block, bringing the stake to 6.07% of its 13F reportable AUM.
- Top five holdings after the filing:
- NASDAQ: CARG: $84.27 million (22.7% of AUM)
- NASDAQ: CME: $47.85 million (12.9% of AUM)
- NASDAQ: GTX: $40.88 million (11.0% of AUM)
- NASDAQ: BKNG: $36.55 million (9.8% of AUM)
- NYSE: PHIN: $26.01 million (7.0% of AUM)
- As of April 24, 2026, shares were priced at $30.26, down 46.6% in the past year, underperforming the S&P 500 by 77.19 percentage points.
- Dividend yield stands at 5.31%, forward P/E is 5.51, and EV/EBITDA is 6.83.
- The position was previously 4.4% of the fund’s AUM as of the prior quarter.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.79 billion |
| Net Income (TTM) | $611.01 million |
| Dividend Yield | 5.31% |
| Price (as of market close 2026-04-24) | $30.26 |
Company Snapshot
- H&R Block offers assisted and DIY income tax return preparation services, refund-related financial products, and small business financial solutions across the United States, Canada, and Australia.
- It generates revenue primarily through tax preparation fees, financial products such as refund transfers and prepaid cards, and franchise operations.
- The company serves individual taxpayers and small businesses seeking tax filing, refund management, and related financial services.
H&R Block operates a large-scale tax preparation business with a diversified service portfolio, leveraging both company-owned and franchised retail locations as well as digital platforms. The company’s strategy centers on providing accessible tax solutions and value-added financial products to a broad customer base.
What this transaction means for investors
Prevatt Capital’s first quarter purchase of 360,000 shares in H&R Block is noteworthy because the hedge fund boosted its stake, suggesting it’s bullish on the stock. With only 11 holdings, Prevatt Capital is focused only on a handful of equities, reinforcing the idea it has a positive outlook towards H&R Block.
The stock hit a 52-week low of $28.16 in February, and that may have been the catalyst for Prevatt Capital’s additional investment. After all, H&R Block was entering the busy tax season in Q1, and if its business ends up exceeding Wall Street’s expectations, shares could soar.
H&R Block exited its fiscal second quarter, ended Dec. 31, with sales of $198.9 million, a strong 11% year-over-year increase. Yet the shares are down as Wall Street worries artificial intelligence could disrupt the company’s business over the long term.
With its share price down, H&R Block’s stock valuation looks attractive. Its price-to-sales ratio of one is around a multi-year low, suggesting shares are cheap. If you believe H&R Block can remain resilient against the AI threat, then now is a good time to buy.
