Liberty Tax Inc. (NASDAQ:TAX) is Attracting Smart Money


In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Liberty Tax Inc. (NASDAQ:TAX) reported that Datatax Business Services Ltd has picked up 3,000,000 of common stock as of 2017-07-18.

The acquisition brings the aggregate amount owned by Datatax Business Services Ltd to a total of 3,000,000 representing a 21.6% in the company.

For those not familiar with the company, Liberty Tax, Inc. is the holding company for JTH Tax, Inc. The Company is a provider of tax preparation services. The Company provides retail federal and state income tax preparation services and related tax settlement products in the United States and Canada. The Company’s tax preparation services and related tax settlement products are offered primarily through franchised locations. All of the Company’s offices are operated under the Liberty Tax Service and SiempreTax+ brands. The Company also provides an online digital Do-It-Yourself (DIY) tax program in the United States. The Company offers two types of tax settlement financial products: refund transfer products, which include providing a means by which a customer receives his or her refund, and refund-based loans. The Company’s LibTax software allows tax customers to have their federal and state income tax returns filed electronically.

A glance at Liberty Tax Inc. (NASDAQ:TAX)’s key stats reveals a current market capitalization of 178.87 Million based on 12.68 Million shares outstanding and a price at last close of $13.95 per share.

Looking at insider activity, there are a few recent transactions worth noting.

Specifically, on 2016-09-16, Howard picked up 10,000 at a purchase price of $12.66. This brings their total holding to 60,000 as of the date of the filing.

On the sell side, the most recent transaction saw Mcdowell unload 5,000 shares at a sale price of $13.58. This brings their total holding to 42,579.

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Liberty Tax Inc. (NASDAQ:TAX) as things move forward to see if its progress aligns with these transactions. Subscribe below and we’ll keep you on top of what’s happening before it moves markets.