Intuit (NASDAQ:INTU) Lowered to "Hold" Rating by Zacks Research

Key Points

• Zacks Research has downgraded Intuit from a "strong-buy" rating to a "hold" rating, indicating a shift in analyst sentiment towards the company.
• Despite the downgrade, several analysts, including HSBC and Evercore ISI, have recently set higher price targets for Intuit, with a consensus average target of $797.62.
• Intuit reported an earnings per share (EPS) of $2.75 for the last quarter, exceeding expectations, and showing a year-over-year revenue increase of 20.3%.

Zacks Research downgraded shares of Intuit (NASDAQ:INTU - Free Report) from a strong-buy rating to a hold rating in a research report released on Thursday,Zacks.com reports.

A number of other equities analysts have also commented on the stock. Jefferies Financial Group set a $850.00 price objective on shares of Intuit and gave the stock a "buy" rating in a report on Friday, May 23rd. Morgan Stanley cut their target price on shares of Intuit from $900.00 to $880.00 and set an "overweight" rating on the stock in a research note on Friday. The Goldman Sachs Group upped their target price on shares of Intuit from $750.00 to $860.00 and gave the company a "buy" rating in a research note on Monday, May 19th. Barclays cut their target price on shares of Intuit from $815.00 to $785.00 and set an "overweight" rating on the stock in a research note on Friday. Finally, HSBC upgraded shares of Intuit from a "hold" rating to a "buy" rating and set a $699.00 target price on the stock in a research note on Wednesday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $797.62.

Intuit Stock Up 0.4%

INTU stock traded up $2.58 during trading on Thursday, reaching $659.54. The stock had a trading volume of 3,762,506 shares, compared to its average volume of 1,823,597. Intuit has a 1-year low of $532.65 and a 1-year high of $813.70. The company has a current ratio of 1.36, a quick ratio of 1.45 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $183.98 billion, a P/E ratio of 48.00, a PEG ratio of 2.55 and a beta of 1.28. The firm has a fifty day moving average price of $754.86 and a 200 day moving average price of $676.08.

Intuit (NASDAQ:INTU - Get Free Report) last issued its quarterly earnings data on Thursday, August 21st. The software maker reported $2.75 EPS for the quarter, topping analysts' consensus estimates of $2.66 by $0.09. Intuit had a net margin of 20.55% and a return on equity of 22.72%. The firm had revenue of $3.83 billion for the quarter, compared to analyst estimates of $3.75 billion. During the same quarter in the previous year, the business posted $1.99 EPS. The firm's revenue was up 20.3% compared to the same quarter last year. Intuit has set its Q1 2026 guidance at 3.050-3.120 EPS. FY 2026 guidance at 22.980-23.180 EPS. On average, equities analysts anticipate that Intuit will post 14.09 earnings per share for the current year.

Intuit Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 17th. Stockholders of record on Thursday, October 9th will be paid a dividend of $1.20 per share. This is a positive change from Intuit's previous quarterly dividend of $1.04. The ex-dividend date is Thursday, October 9th. This represents a $4.80 annualized dividend and a dividend yield of 0.7%. Intuit's dividend payout ratio (DPR) is currently 30.28%.

Insiders Place Their Bets

In related news, insider Scott D. Cook sold 62,816 shares of the firm's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $765.99, for a total value of $48,116,427.84. Following the transaction, the insider directly owned 6,000,679 shares in the company, valued at approximately $4,596,460,107.21. This trade represents a 1.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Sandeep Aujla sold 2,591 shares of the firm's stock in a transaction on Thursday, July 3rd. The shares were sold at an average price of $782.22, for a total transaction of $2,026,732.02. Following the completion of the transaction, the chief financial officer owned 768 shares in the company, valued at $600,744.96. The trade was a 77.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 149,650 shares of company stock worth $113,959,883 in the last ninety days. 2.68% of the stock is owned by insiders.

Institutional Trading of Intuit

Several hedge funds and other institutional investors have recently bought and sold shares of INTU. Norges Bank acquired a new stake in Intuit in the 2nd quarter worth $3,268,830,000. GAMMA Investing LLC grew its position in Intuit by 69,701.9% in the 1st quarter. GAMMA Investing LLC now owns 2,825,582 shares of the software maker's stock worth $17,348,790,000 after purchasing an additional 2,821,534 shares during the last quarter. Nuveen LLC acquired a new stake in Intuit in the 1st quarter worth $882,031,000. Nicholas Hoffman & Company LLC. acquired a new stake in Intuit in the 1st quarter worth $785,564,000. Finally, Winslow Capital Management LLC acquired a new stake in Intuit in the 2nd quarter worth $782,677,000. 83.66% of the stock is currently owned by institutional investors and hedge funds.

Intuit Company 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.