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

Shares of 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.

Other analysts have also issued reports about the stock. Truist Financial decreased their price target on shares of Intuit from $500.00 to $410.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Jefferies Financial Group cut their price objective on shares of Intuit from $650.00 to $550.00 and set a “buy” rating for the company in a research report on Thursday, May 21st. HSBC reduced their target price on shares of Intuit from $897.00 to $707.00 and set a “buy” rating for the company in a research note on Friday, May 22nd. Deutsche Bank Aktiengesellschaft decreased their target price on Intuit from $600.00 to $530.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Finally, Mizuho cut their price target on Intuit from $600.00 to $500.00 and set an “outperform” rating for the company in a report on Tuesday, May 26th. Twenty-one research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Intuit currently has a consensus rating of “Moderate Buy” and an average target price of $468.84.

Insider Transactions at Intuit

In related news, Director Richard L. Dalzell sold 338 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $279.86, for a total value of $94,592.68. Following the sale, the director owned 12,326 shares of the company’s stock, valued at $3,449,554.36. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vasant M. Prabhu bought 1,250 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was bought at an average cost of $309.45 per share, with a total value of $386,812.50. Following the completion of the acquisition, the director owned 1,250 shares in the company, valued at $386,812.50. This represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 1,239 shares of company stock valued at $348,354 over the last ninety days. 2.49% of the stock is owned by insiders.

More Intuit News

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Some commentary remains supportive of Intuit’s long-term setup, with one recent article arguing the post-selloff decline may be an overreaction and another highlighting TurboTax Live’s strong performance as a potential offset to DIY tax business softness. Intuit’s TurboTax Live Is Thriving: Can It Offset DIY Choppiness? L1 Capital International Sees Intuit’s (INTU) Decline as Market’s Overreaction
• Neutral Sentiment: Susquehanna lowered its price target on Intuit but kept a positive rating, suggesting analysts still see upside despite the recent weakness. Benzinga/The Fly coverage of Susquehanna price target change
• Negative Sentiment: Morgan Stanley’s cautious stance on the software group has dampened sentiment across the sector, including Intuit. Adobe, Salesforce and Intuit fall as Morgan Stanley begins cautious coverage
• Negative Sentiment: Multiple law firms are publicizing class-action deadlines and securities-fraud claims against Intuit over alleged misstatements about pricing and TurboTax competitive advantages, creating legal uncertainty and headline risk for shares. INTU Lawsuit Notice: Intuit Pricing Issues and 20% Stock Drop Trigger Securities Fraud Class Action INVESTOR DEADLINE: RGRD Law Announces that Intuit Inc. (INTU) Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Institutional Investors Weigh In On Intuit

Several institutional investors and hedge funds have recently made changes to their positions in INTU. Norges Bank acquired a new position in shares of Intuit in the 4th quarter worth approximately $3,058,407,000. Arrowstreet Capital Limited Partnership increased its holdings in Intuit by 102.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,896,561 shares of the software maker’s stock valued at $1,684,795,000 after purchasing an additional 1,972,719 shares in the last quarter. Nicholas Hoffman & Company LLC. acquired a new stake in Intuit during the 1st quarter valued at $785,564,000. Amundi raised its position in Intuit by 44.9% in the 1st quarter. Amundi now owns 1,563,158 shares of the software maker’s stock valued at $675,878,000 after purchasing an additional 484,602 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in Intuit by 20.3% in the fourth quarter. Bank of New York Mellon Corp now owns 2,791,212 shares of the software maker’s stock worth $1,848,954,000 after purchasing an additional 471,451 shares in the last quarter. Institutional investors and hedge funds own 83.66% of the company’s stock.

Intuit Stock Down 1.4%

The company has a market cap of $79.24 billion, a P/E ratio of 17.54, a PEG ratio of 1.07 and a beta of 1.00. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 0.26. The firm has a fifty day moving average price of $301.21 and a 200 day moving average price of $402.03.

Intuit (NASDAQ:INTU) last released its quarterly earnings results on Wednesday, May 20th. The software maker reported $12.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $12.57 by $0.23. The business had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $8.54 billion. Intuit had a return on equity of 25.18% and a net margin of 21.91%.The firm’s revenue for the quarter was up 10.4% compared to the same quarter last year. During the same period in the previous year, the business posted $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. Equities research analysts forecast that Intuit Inc. will post 18.18 earnings per share for the current year.

Intuit Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 17th. Stockholders of record on Thursday, July 9th were given a dividend of $1.20 per share. 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 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.