Bank of America Initiates Coverage on Intuit (NASDAQ:INTU)

Key Points

• Bank of America initiated coverage of Intuit with a buy rating and a $400 price target, implying about 28.6% upside from the current share price.
• Intuit’s recent quarterly results beat expectations, with EPS of $12.80 versus estimates of $12.57 and revenue of $8.56 billion, up 10.4% year over year. The company also issued Q4 2026 and FY 2026 guidance above the current analyst forecast.
• Despite the positive outlook from some analysts, the stock has been under pressure: shares traded around $311.11 after a sharp decline from their 52-week high, and several firms recently cut price targets following the selloff.

Bank of America initiated coverage on shares of Intuit (NASDAQ:INTU - Get Free Report) in a report issued on Wednesday. The brokerage set a "buy" rating and a $400.00 price target on the software maker's stock. Bank of America's price target indicates a potential upside of 28.57% from the company's current price.

Other analysts have also recently issued research reports about the company. Rothschild & Co Redburn upgraded Intuit from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $670.00 to $700.00 in a report on Tuesday, March 10th. Argus decreased their price objective on shares of Intuit from $580.00 to $480.00 and set a "buy" rating for the company in a research note on Friday, May 22nd. HSBC reduced their target price on shares of Intuit from $897.00 to $707.00 and set a "buy" rating on the stock in a research report on Friday, May 22nd. Weiss Ratings downgraded shares of Intuit from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 11th. Finally, KeyCorp dropped their price target on shares of Intuit from $520.00 to $450.00 and set an "overweight" rating on the stock in a research note on Thursday, May 21st. Twenty-four research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Intuit presently has a consensus rating of "Moderate Buy" and an average target price of $530.16.

Intuit Price Performance

Intuit stock traded up $6.76 during mid-day trading on Wednesday, hitting $311.11. 1,567,214 shares of the company were exchanged, compared to its average volume of 3,967,719. Intuit has a 12-month low of $300.50 and a 12-month high of $813.70. The company has a market capitalization of $85.10 billion, a P/E ratio of 18.85, a PEG ratio of 1.24 and a beta of 1.04. The business's 50 day simple moving average is $398.54 and its two-hundred day simple moving average is $504.48. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.45 and a quick ratio of 1.45.

Intuit (NASDAQ:INTU - Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The software maker reported $12.80 EPS for the quarter, beating analysts' consensus estimates of $12.57 by $0.23. Intuit had a return on equity of 25.18% and a net margin of 21.91%.The business had revenue of $8.56 billion for the quarter, compared to analyst estimates of $8.54 billion. During the same quarter last year, the company earned $11.65 earnings per share. The business's revenue for the quarter was up 10.4% compared to the same quarter last year. 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 forecast that Intuit will post 17.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Intuit

In related news, Director Vasant M. Prabhu bought 500 shares of the stock in a transaction dated Tuesday, May 26th. The stock was bought at an average cost of $309.71 per share, with a total value of $154,855.00. Following the completion of the acquisition, the director owned 1,750 shares of the company's stock, valued at $541,992.50. This trade represents a 40.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard L. Dalzell sold 333 shares of the company's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $440.40, for a total value of $146,653.20. Following the transaction, the director owned 13,253 shares of the company's stock, valued at approximately $5,836,621.20. The trade was a 2.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.49% of the stock is owned by insiders.

Hedge Funds Weigh In On Intuit

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its position in Intuit by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 28,918,438 shares of the software maker's stock worth $19,156,152,000 after purchasing an additional 296,448 shares during the last quarter. State Street Corp boosted its position in Intuit by 1.4% during the 4th quarter. State Street Corp now owns 13,062,848 shares of the software maker's stock worth $8,653,092,000 after acquiring an additional 180,069 shares during the period. Geode Capital Management LLC grew its stake in shares of Intuit by 1.3% in the fourth quarter. Geode Capital Management LLC now owns 6,614,539 shares of the software maker's stock worth $4,369,488,000 after purchasing an additional 87,451 shares in the last quarter. Morgan Stanley increased its holdings in shares of Intuit by 1.2% during the fourth quarter. Morgan Stanley now owns 5,100,857 shares of the software maker's stock valued at $3,378,912,000 after purchasing an additional 60,910 shares during the period. Finally, Norges Bank acquired a new position in shares of Intuit during the fourth quarter valued at $3,058,407,000. Institutional investors own 83.66% of the company's stock.

More Intuit News

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Director Vasant M. Prabhu bought a total of 1,750 shares in two recent transactions, signaling insider confidence after the sharp selloff. SEC Form 4 filing
• Positive Sentiment: Several analysts and market commentators continue to point to Intuit’s long-term growth drivers, including TurboTax Live, assisted tax services, and AI-related product expansion. Yahoo Finance article
• Positive Sentiment: Some coverage argues the recent pullback may have created a value opportunity, with one analyst still seeing substantial upside from current levels. TipRanks article
• Neutral Sentiment: Multiple recent articles remain broadly constructive on INTU’s valuation and growth profile, but they do not add a new operational catalyst. Zacks article
• Negative Sentiment: Investor concern is centered on Intuit’s pricing issues, which have led to securities-fraud investigations and likely pressured the stock. PR Newswire investigation notice
• Negative Sentiment: Intuit also filed mass-layoff notices in California and Nevada, reinforcing worries that the company is restructuring aggressively while pivoting toward AI. AOL article
• Negative Sentiment: Several brokerage firms cut price targets after the recent earnings-related selloff, reflecting lowered near-term expectations. StockTwits/MarketBeat article

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.

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