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

Intuit Inc. (NASDAQ:INTU)’s stock price gapped down prior to trading 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 traded.

INTU has been the subject of several other research reports. Deutsche Bank Aktiengesellschaft dropped their price target on Intuit from $600.00 to $530.00 and set a “buy” rating for the company in a research note on Thursday, May 21st. Argus reduced their price objective on Intuit from $580.00 to $480.00 and set a “buy” rating on the stock in a research report on Friday, May 22nd. UBS Group decreased their price objective on Intuit from $440.00 to $360.00 and set a “neutral” rating on the stock in a report on Thursday, May 21st. Piper Sandler started coverage on Intuit in a research note on Tuesday, July 14th. They issued an “underweight” rating and a $250.00 target price for the company. Finally, Northcoast Research reduced their price target on shares of Intuit from $575.00 to $465.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Twenty-one analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $468.84.

Insider Activity

In related news, Director Vasant M. Prabhu acquired 500 shares of Intuit stock in a transaction dated Tuesday, May 26th. The shares were purchased at an average cost of $309.71 per share, with a total value of $154,855.00. Following the completion of the purchase, the director owned 1,750 shares of the company’s stock, valued at $541,992.50. This represents a 40.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Richard L. Dalzell sold 284 shares of Intuit stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $262.32, for a total value of $74,498.88. Following the completion of the transaction, the director owned 11,758 shares in the company, valued at approximately $3,084,358.56. This represents a 2.36% 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 90 days, insiders have sold 1,239 shares of company stock valued at $348,354. Company insiders own 2.49% of the company’s stock.

Key Stories Impacting Intuit

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Intuit launched a new QuickBooks-linked small business credit card with Mastercard, adding a spend-management and rewards product that could deepen the company’s ecosystem and support growth in its small-business segment. Article link
• Neutral Sentiment: Several articles reiterated Intuit’s longer-term growth appeal and highlighted its enterprise and QuickBooks platform strengths, but these were largely commentary pieces rather than fresh catalysts.
• Negative Sentiment: Multiple law firms announced or repeated reminders about a securities-fraud class action against Intuit, alleging misstatements or omissions about TurboTax’s competitive position, pricing pressure, and the strength of the tax business. These legal headlines can weigh on investor sentiment and raise uncertainty around the stock. Article link
• Negative Sentiment: Separately, Morgan Stanley’s cautious coverage and lowered expectations added to the pressure on Intuit and other software names, reinforcing concerns about near-term sentiment. Article link

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Betterment LLC grew its stake in Intuit by 2.1% in the third quarter. Betterment LLC now owns 779 shares of the software maker’s stock valued at $532,000 after purchasing an additional 16 shares during the last quarter. One Capital Management LLC lifted its position in shares of Intuit by 2.7% during the third quarter. One Capital Management LLC now owns 681 shares of the software maker’s stock valued at $465,000 after buying an additional 18 shares during the last quarter. Quadcap Wealth Management LLC boosted its holdings in shares of Intuit by 1.0% in the 3rd quarter. Quadcap Wealth Management LLC now owns 1,801 shares of the software maker’s stock valued at $1,230,000 after buying an additional 18 shares in the last quarter. SeaCrest Wealth Management LLC boosted its holdings in shares of Intuit by 2.4% in the 4th quarter. SeaCrest Wealth Management LLC now owns 764 shares of the software maker’s stock valued at $498,000 after buying an additional 18 shares in the last quarter. Finally, PFG Investments LLC grew its position in shares of Intuit by 2.0% in the 4th quarter. PFG Investments LLC now owns 915 shares of the software maker’s stock worth $606,000 after buying an additional 18 shares during the last quarter. 83.66% of the stock is owned by hedge funds and other institutional investors.

Intuit Stock Performance

The firm’s 50 day moving average is $297.51 and its 200 day moving average is $396.75. 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 stock has a market cap of $77.81 billion, a P/E ratio of 17.23, a price-to-earnings-growth ratio of 1.06 and a beta of 1.00.

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

Intuit Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 17th. Shareholders of record on Thursday, July 9th were given a $1.20 dividend. This represents a $4.80 annualized dividend and a yield of 1.7%. The ex-dividend date was Thursday, July 9th. Intuit’s dividend payout ratio is currently 29.07%.

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.