Intuit (NASDAQ:INTU) Shares Gap Up – What’s Next?

Intuit Inc. (NASDAQ:INTU)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $335.60, but opened at $348.01. Intuit shares last traded at $353.7140, with a volume of 454,391 shares traded.

Key Intuit News

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Intuit benefited from a broader rotation into enterprise software after weakness in AI hardware stocks. The move suggests traders are reassessing the durability and valuation of software businesses, although it may be a short-term sector trade. Software Stocks Soar in Rotational Trade
• Positive Sentiment: Investor commentary highlighted Intuit’s potential to use AI through its AI-native enterprise resource planning products and Intuit Intelligence chat. A separate investment analysis argued that tax preparation and AI could complement one another, supporting the long-term growth narrative. Intuit Expanding AI-Native ERP
• Positive Sentiment: A GuruFocus analysis cited a GF Score of 78, reflecting relatively favorable quality, growth, profitability, and valuation characteristics. Intuit’s latest reported quarter also showed year-over-year revenue growth and an earnings-per-share beat, providing fundamental support for the rebound. Intuit GF Score Analysis

Analyst Upgrades and Downgrades

INTU has been the subject of a number of research reports. HSBC cut their price objective on Intuit from $897.00 to $707.00 and set a “buy” rating for the company in a report on Friday, May 22nd. BMO Capital Markets reduced their price target on shares of Intuit from $550.00 to $412.00 and set an “outperform” rating on the stock in a research report on Thursday, May 21st. TD Cowen reissued a “buy” rating on shares of Intuit in a research note on Tuesday. Piper Sandler restated an “underweight” rating and issued a $250.00 price objective on shares of Intuit in a report on Wednesday. Finally, The Goldman Sachs Group cut shares of Intuit from a “neutral” rating to a “sell” rating and cut their price objective for the company from $519.00 to $276.00 in a research note on Tuesday, June 2nd. Twenty research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $451.26.

Intuit Trading Up 3.4%

The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.45 and a current ratio of 1.45. The firm has a 50-day moving average of $295.58 and a 200-day moving average of $360.88. The firm has a market capitalization of $99.15 billion, a P/E ratio of 21.95, a price-to-earnings-growth ratio of 1.11 and a beta of 0.97.

Intuit (NASDAQ:INTU) last announced its quarterly earnings data on Wednesday, May 20th. The software maker reported $12.80 earnings per share for the quarter, beating the consensus estimate of $12.57 by $0.23. Intuit had a return on equity of 25.18% and a net margin of 21.91%.The firm had revenue of $8.56 billion during the quarter, compared to the consensus estimate of $8.54 billion. During the same quarter in the previous year, the company posted $11.65 earnings per share. The business’s revenue was up 10.4% on a year-over-year basis. On average, equities research analysts anticipate that Intuit Inc. will post 18.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Vasant M. Prabhu acquired 500 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were purchased at an average price of $309.71 per share, for a total transaction of $154,855.00. Following the completion of the transaction, the director owned 1,750 shares of the company’s stock, valued at $541,992.50. The trade was a 40.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard L. Dalzell sold 284 shares of the company’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $262.32, for a total transaction of $74,498.88. Following the transaction, the director directly owned 11,758 shares of the company’s stock, valued at approximately $3,084,358.56. This trade represents a 2.36% decrease in their ownership of the stock. 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. Insiders have sold a total of 1,239 shares of company stock valued at $348,354 over the last quarter. 2.49% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of INTU. Joseph Group Capital Management bought a new stake in shares of Intuit in the 4th quarter worth approximately $25,000. Fiduciary Financial Advisors bought a new position in shares of Intuit during the second quarter valued at approximately $25,000. Intesa Sanpaolo Wealth Management purchased a new stake in Intuit in the fourth quarter worth $25,000. Osbon Capital Management LLC bought a new stake in Intuit in the second quarter valued at $26,000. Finally, MidFirst Bank bought a new stake in Intuit in the second quarter valued at $28,000. Hedge funds and other institutional investors own 83.66% of the company’s stock.

About Intuit

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.