Generation Investment Management LLP Takes Position in Intuit Inc. $INTU

Key Points

• Generation Investment Management initiated a 1.095 million-share Intuit position valued at approximately $285.9 million, representing 2.8% of its portfolio and about 0.4% of Intuit’s outstanding shares.
• Intuit reported quarterly revenue of $8.56 billion, up 10.4% year over year, and adjusted earnings of $12.80 per share, exceeding analyst expectations. Investor interest is also being supported by the company’s AI initiatives and favorable growth and profitability assessments.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $451.26, although several firms recently lowered their targets and ratings range from Buy to Sell. The stock opened at $362.47, while institutional investors collectively own 83.66% of Intuit.

Generation Investment Management LLP bought a new position in shares of Intuit Inc. (NASDAQ:INTU - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor bought 1,095,488 shares of the software maker's stock, valued at approximately $285,922,000. Intuit accounts for approximately 2.8% of Generation Investment Management LLP's holdings, making the stock its 14th biggest position. Generation Investment Management LLP owned approximately 0.40% of Intuit as of its most recent SEC filing.

A number of other institutional investors have also recently added to or reduced their stakes in INTU. Betterment LLC increased its holdings in Intuit by 2.1% in the 3rd quarter. Betterment LLC now owns 779 shares of the software maker's stock worth $532,000 after acquiring an additional 16 shares in the last quarter. One Capital Management LLC lifted its holdings in 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 purchasing an additional 18 shares in the last quarter. Quadcap Wealth Management LLC grew its position in shares of Intuit by 1.0% in the third quarter. Quadcap Wealth Management LLC now owns 1,801 shares of the software maker's stock valued at $1,230,000 after purchasing an additional 18 shares during the period. United Asset Strategies Inc. increased its stake in shares of Intuit by 1.0% during the fourth quarter. United Asset Strategies Inc. now owns 2,036 shares of the software maker's stock worth $1,349,000 after purchasing an additional 20 shares in the last quarter. Finally, Sage Private Wealth Group LLC increased its stake in shares of Intuit by 2.8% during the fourth quarter. Sage Private Wealth Group LLC now owns 802 shares of the software maker's stock worth $531,000 after purchasing an additional 22 shares in the last quarter. Institutional investors and hedge funds own 83.66% of the company's stock.

Key Headlines Impacting Intuit

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

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on INTU. Rothschild & Co Redburn decreased their price target on shares of Intuit from $700.00 to $600.00 and set a "buy" rating on the stock in a research note on Tuesday, June 2nd. UBS Group reissued a "neutral" rating on shares of Intuit in a report on Tuesday. Piper Sandler restated an "underweight" rating and issued a $250.00 target price on shares of Intuit in a research report on Wednesday. Daiwa Securities Group dropped their price target on Intuit from $640.00 to $500.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Finally, Susquehanna reduced their price objective on Intuit from $550.00 to $427.00 and set a "positive" rating for the company in a research note on Monday, July 20th. Twenty research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Intuit currently has an average rating of "Moderate Buy" and an average target price of $451.26.

Intuit Trading Up 3.4%

INTU opened at $362.47 on Thursday. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.45 and a quick ratio of 1.45. The company's 50 day simple moving average is $295.58 and its two-hundred day simple moving average is $360.88. The firm has a market capitalization of $99.15 billion, a price-to-earnings ratio of 21.95, a price-to-earnings-growth ratio of 1.11 and a beta of 0.97. Intuit Inc. has a 1-year low of $252.84 and a 1-year high of $705.10.

Intuit (NASDAQ:INTU - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The software maker reported $12.80 EPS 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 analysts' expectations of $8.54 billion. During the same quarter last year, the firm earned $11.65 earnings per share. The business's revenue for the quarter was up 10.4% on a year-over-year basis. Analysts expect that Intuit Inc. will post 18.18 EPS for the current fiscal year.

Insider Buying and Selling at Intuit

In other news, Director Richard L. Dalzell sold 284 shares of the business'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 owned 11,758 shares of the company's stock, valued at approximately $3,084,358.56. The trade was a 2.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vasant M. Prabhu acquired 500 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average cost of $309.71 per share, with a total value of $154,855.00. Following the acquisition, the director directly owned 1,750 shares of the company's stock, valued at $541,992.50. This trade represents a 40.00% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders sold 1,239 shares of company stock valued at $348,354. 2.49% of the stock is owned by company insiders.

Intuit 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.

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