Do These Downgrades Indicate Big Trouble Is Looming For These Stocks?

We can now move on to H&R Block Inc (NYSE:HRB), which was downgraded to “Neutral” from “Buy” by BTIG Research. The company’s shares reached a 52-week high of $39.29 per share on September 9, so BTIG had to adjust its rating on the stock. The company that provides tax preparation, banking, and other services recently posted its financial results for the first quarter of fiscal 2016 that ended July 31, which might explain the recent high. H&R Block reported total revenues of $137.72 million for the quarter, compared with $133.59 million reported a year ago. The company managed to deliver year-over-year revenue growth despite facing currency headwinds, which partially offset the higher product revenues. The company’s loss tightened noticeably year-over-year to $99.66 million from $116.23 million reported in the same quarter a year ago. Even more to that, H&R Block recently announced a $3.5 billion share buyback plan, so one should expect improved earnings per share (EPS) in the quarters ahead. In the meantime, First Eagle Investment Management, founded by Jean-Marie Eveillard, holds one of the most sizable stakes in H&R Block Inc (NYSE:HRB), which consists of 5.85 million shares.

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