Intuit (NASDAQ:INTU) Shares Gap Down Following Analyst Downgrade

Intuit Inc. (NASDAQ:INTU) gapped down before the market opened on Tuesday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $293.82, but opened at $280.06. Morgan Stanley now has a $335.00 price target on the stock, down from their previous price target of $580.00. Intuit shares last traded at $289.0630, with a volume of 509,838 shares.

A number of other research analysts have also recently commented on the stock. Rothschild & Co Redburn decreased their target price on shares of Intuit from $700.00 to $600.00 and set a “buy” rating on the stock in a research report on Tuesday, June 2nd. TD Cowen dropped their price target on shares of Intuit from $576.00 to $504.00 and set a “buy” rating for the company in a research report on Thursday, May 21st. Wells Fargo & Company reduced their price target on shares of Intuit from $425.00 to $360.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 21st. Piper Sandler began coverage on shares of Intuit in a report on Tuesday, July 14th. They issued an “underweight” rating and a $250.00 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Intuit from $600.00 to $530.00 and set a “buy” rating for the company in a research report on Thursday, May 21st. Twenty-one investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $468.84.

Insider Activity

In other Intuit news, Director Vasant M. Prabhu purchased 1,250 shares of Intuit stock in a transaction dated Friday, May 22nd. The shares were acquired at an average price of $309.45 per share, with a total value of $386,812.50. Following the completion of the transaction, the director owned 1,250 shares of the company’s stock, valued at $386,812.50. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard L. Dalzell sold 338 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $279.86, for a total transaction of $94,592.68. Following the completion of the transaction, the director directly owned 12,326 shares of the company’s stock, valued at approximately $3,449,554.36. The trade was a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,239 shares of company stock valued at $348,354. 2.49% of the stock is currently owned by corporate insiders.

Trending Headlines about Intuit

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Several articles still highlight Intuit as a long-term growth and value name, with analysts and market commentary pointing to strong franchise quality and upside potential after the recent selloff. Why Intuit (INTU) is a Top Growth Stock for the Long-Term
• Positive Sentiment: One note from L1 Capital International described the decline in Intuit shares as an overreaction, suggesting some investors see the weakness as excessive relative to the company’s fundamentals. L1 Capital International Sees Intuit’s (INTU) Decline as Market’s Overreaction
• Neutral Sentiment: Coverage also noted that Intuit’s TurboTax Live business is performing well, even as the company works to refresh DIY tax products with simpler offerings and more competitive pricing to win back cost-conscious filers. Intuit’s TurboTax Live Is Thriving: Can It Offset DIY Choppiness?
• Negative Sentiment: Fresh class-action filings and law-firm alerts accused Intuit of securities-law violations and alleged misrepresentations about pricing pressure and TurboTax’s competitive advantages, which can weigh on sentiment and keep investors cautious. Pomerantz Law Firm Announces the Filing of a Class Action Against Intuit Inc. and Certain Officers – INTU
• Negative Sentiment: Brokerage commentary also turned more cautious, with Morgan Stanley’s mixed stance on software names contributing to weakness in Intuit alongside peers. Adobe, Salesforce and Intuit fall as Morgan Stanley begins cautious coverage

Hedge Funds Weigh In On Intuit

Several institutional investors have recently modified their holdings of the business. Investors Research Corp boosted its holdings in Intuit by 10.2% in the second quarter. Investors Research Corp now owns 1,077 shares of the software maker’s stock valued at $281,000 after purchasing an additional 100 shares during the period. Doliver Advisors LP increased its holdings in Intuit by 190.2% during the 2nd quarter. Doliver Advisors LP now owns 5,171 shares of the software maker’s stock worth $1,350,000 after purchasing an additional 3,389 shares during the period. Revolve Wealth Partners LLC raised its position in Intuit by 22.1% in the 2nd quarter. Revolve Wealth Partners LLC now owns 1,038 shares of the software maker’s stock valued at $271,000 after purchasing an additional 188 shares in the last quarter. Atlas Brown Inc. acquired a new stake in Intuit in the 2nd quarter valued at about $400,000. Finally, Fluent Financial LLC purchased a new position in shares of Intuit in the 2nd quarter valued at about $1,454,000. Institutional investors and hedge funds own 83.66% of the company’s stock.

Intuit Stock Down 1.3%

The firm has a market cap of $79.30 billion, a PE ratio of 17.56, a PEG ratio of 1.08 and a beta of 1.00. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 0.26. The firm has a 50 day moving average price of $299.25 and a 200-day moving average price of $399.41.

Intuit (NASDAQ:INTU) last released its earnings results on Wednesday, May 20th. The software maker reported $12.80 earnings per share for the quarter, topping analysts’ consensus estimates of $12.57 by $0.23. The firm had revenue of $8.56 billion for the quarter, compared to analyst estimates of $8.54 billion. Intuit had a net margin of 21.91% and a return on equity of 25.18%. The business’s quarterly revenue was up 10.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $11.65 earnings per share. Intuit has set its Q4 2026 guidance at 3.560-3.620 EPS and its FY 2026 guidance at 23.800-23.850 EPS. Research analysts forecast that Intuit Inc. will post 18.18 EPS for the current fiscal year.

Intuit Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 17th. Stockholders of record on Thursday, July 9th were issued a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Thursday, July 9th. Intuit’s dividend payout ratio (DPR) is presently 29.07%.

Intuit Company Profile

Intuit Inc (NASDAQ: INTU) is a financial software company headquartered in Mountain View, California, that develops and sells cloud-based financial management and compliance products for individuals, small businesses, self-employed workers and accounting professionals. Founded in 1983 by Scott Cook and Tom Proulx, the company has grown from desktop tax and accounting software into a diversified provider of online financial tools. As of my latest update, Sasan Goodarzi serves as Chief Executive Officer.

Intuit’s product portfolio includes QuickBooks, its flagship accounting and business-management platform that offers bookkeeping, payroll, payments and invoicing capabilities; TurboTax, a tax-preparation and filing service aimed at individual taxpayers; and Mint, a consumer personal-finance and budgeting app.