Jensen Investment Management Inc. Sells 141,310 Shares of Intuit Inc. (NASDAQ:INTU)

Key Points

• Jensen Investment Management Inc. reduced its stake in Intuit by 14.6%, now holding 829,379 shares valued at approximately $509 million, making it the firm's 6th largest holding.
• Intuit reported a quarterly EPS of $11.65, exceeding analysts' expectations of $10.89, with revenue of $7.75 billion, a 15.1% increase year-over-year.
• Insider selling has been significant, with executives selling 279,800 shares worth over $209 million in the last 90 days, leading to concerns about ownership reduction among company insiders.

Jensen Investment Management Inc. trimmed its holdings in Intuit Inc. (NASDAQ:INTU - Free Report) by 14.6% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 829,379 shares of the software maker's stock after selling 141,310 shares during the quarter. Intuit comprises approximately 5.6% of Jensen Investment Management Inc.'s portfolio, making the stock its 6th biggest position. Jensen Investment Management Inc. owned approximately 0.30% of Intuit worth $509,230,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in INTU. Copia Wealth Management acquired a new position in Intuit during the fourth quarter worth approximately $25,000. Heck Capital Advisors LLC purchased a new position in shares of Intuit during the fourth quarter worth approximately $28,000. Olde Wealth Management LLC acquired a new position in shares of Intuit in the 1st quarter valued at $37,000. Atlantic Edge Private Wealth Management LLC increased its holdings in shares of Intuit by 523.1% in the 1st quarter. Atlantic Edge Private Wealth Management LLC now owns 81 shares of the software maker's stock valued at $50,000 after acquiring an additional 68 shares during the period. Finally, Hughes Financial Services LLC purchased a new stake in Intuit in the 1st quarter valued at $50,000. 83.66% of the stock is currently owned by hedge funds and other institutional investors.

Intuit Price Performance

Shares of INTU stock traded down $12.61 during mid-day trading on Friday, reaching $749.00. The stock had a trading volume of 1,670,219 shares, compared to its average volume of 1,423,083. The company has a market cap of $208.93 billion, a P/E ratio of 60.80, a price-to-earnings-growth ratio of 2.93 and a beta of 1.28. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 0.29. Intuit Inc. has a 12-month low of $532.65 and a 12-month high of $813.70. The business has a 50-day simple moving average of $769.27 and a 200 day simple moving average of $667.24.

Intuit (NASDAQ:INTU - Get Free Report) last announced its earnings results on Thursday, May 22nd. The software maker reported $11.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $10.89 by $0.76. The company had revenue of $7.75 billion during the quarter, compared to analysts' expectations of $7.56 billion. Intuit had a net margin of 19.07% and a return on equity of 21.46%. The firm's quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $9.88 earnings per share. On average, sell-side analysts anticipate that Intuit Inc. will post 14.09 earnings per share for the current year.

Intuit Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 18th. Shareholders of record on Thursday, July 10th were given a dividend of $1.04 per share. The ex-dividend date of this dividend was Thursday, July 10th. This represents a $4.16 annualized dividend and a yield of 0.6%. Intuit's dividend payout ratio (DPR) is presently 33.77%.

Wall Street Analyst Weigh In

A number of research firms have commented on INTU. CLSA initiated coverage on shares of Intuit in a research note on Thursday, June 26th. They issued an "outperform" rating and a $900.00 price objective on the stock. KeyCorp reiterated an "overweight" rating and issued a $850.00 target price (up from $770.00) on shares of Intuit in a research note on Friday, May 23rd. Hsbc Global Res raised Intuit from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 23rd. UBS Group set a $750.00 price target on Intuit and gave the stock a "neutral" rating in a report on Friday, May 23rd. Finally, Scotiabank upgraded shares of Intuit from a "sector perform" rating to a "sector outperform" rating and lifted their price objective for the company from $600.00 to $700.00 in a research report on Thursday, April 17th. One analyst has rated the stock with a sell rating, two have given a hold rating, twenty-one have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, Intuit currently has a consensus rating of "Moderate Buy" and an average price target of $806.27.

Insider Activity at Intuit

In other news, EVP Marianna Tessel sold 34,329 shares of the company's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $760.84, for a total value of $26,118,876.36. Following the sale, the executive vice president directly owned 40,767 shares in the company, valued at $31,017,164.28. This represents a 45.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Laura A. Fennell sold 25,648 shares of the stock in a transaction on Thursday, May 29th. The shares were sold at an average price of $752.25, for a total value of $19,293,708.00. Following the sale, the executive vice president directly owned 22,796 shares in the company, valued at approximately $17,148,291. The trade was a 52.94% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 279,800 shares of company stock valued at $209,725,054 in the last ninety days. 2.68% of the stock is owned by insiders.

Intuit Profile

Intuit Inc provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax.