Intuit (NASDAQ:INTU) Trading Down 5.1% - Here's What Happened

Key Points

• Intuit's shares fell by 5.1% to $710.99 amidst a significant decline in trading volume, dropping 47% from the average.
• Several analysts issued updated ratings and target prices, with Bank of America raising its target to $875.00 and Piper Sandler affirming an "overweight" rating with a target of $825.00.
• Intuit reported a quarterly revenue of $7.75 billion, exceeding expectations and marking a 15.1% increase year-over-year, while its earnings per share (EPS) was $11.65.

Shares of Intuit Inc. (NASDAQ:INTU - Get Free Report) traded down 5.1% on Monday . The company traded as low as $714.88 and last traded at $710.99. 932,871 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 1,756,180 shares. The stock had previously closed at $749.00.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on INTU shares. Stifel Nicolaus upped their price objective on Intuit from $725.00 to $850.00 and gave the company a "buy" rating in a report on Friday, May 23rd. Piper Sandler reaffirmed an "overweight" rating and issued a $825.00 price target (up from $785.00) on shares of Intuit in a research note on Friday, May 23rd. BMO Capital Markets upped their target price on shares of Intuit from $820.00 to $870.00 and gave the company an "outperform" rating in a research note on Thursday, July 10th. UBS Group set a $750.00 target price on shares of Intuit and gave the stock a "neutral" rating in a report on Friday, May 23rd. Finally, CLSA initiated coverage on shares of Intuit in a report on Thursday, June 26th. They issued an "outperform" rating and a $900.00 price target for the company. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, twenty-one have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $807.45.

Intuit Stock Performance

The company's fifty day simple moving average is $763.75 and its two-hundred day simple moving average is $670.99. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.45 and a current ratio of 1.45. The stock has a market capitalization of $199.93 billion, a P/E ratio of 58.18, a PEG ratio of 2.74 and a beta of 1.28.

Intuit (NASDAQ:INTU - Get Free Report) last issued its quarterly earnings data on Thursday, May 22nd. The software maker reported $11.65 EPS for the quarter, beating analysts' consensus estimates of $10.89 by $0.76. Intuit had a return on equity of 21.46% and a net margin of 19.07%. The firm had revenue of $7.75 billion for the quarter, compared to analyst estimates of $7.56 billion. During the same period in the prior year, the firm posted $9.88 EPS. The company's revenue for the quarter was up 15.1% on a year-over-year basis. As a group, equities analysts forecast that Intuit Inc. will post 14.09 EPS for the current year.

Intuit Announces Dividend

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

Insider Activity

In related news, EVP Kerry J. Mclean sold 16,700 shares of the company's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $729.16, for a total transaction of $12,176,972.00. Following the completion of the sale, the executive vice president owned 23,101 shares of the company's stock, valued at $16,844,325.16. This represents a 41.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Laura A. Fennell sold 25,648 shares of the stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $752.25, for a total transaction of $19,293,708.00. Following the sale, the executive vice president owned 22,796 shares in the company, valued at $17,148,291. The trade was a 52.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 279,800 shares of company stock worth $209,725,054. 2.68% of the stock is currently owned by insiders.

Institutional Trading of Intuit

Large investors have recently made changes to their positions in the company. Invesco Ltd. lifted its holdings in shares of Intuit by 1.2% in the first quarter. Invesco Ltd. now owns 3,078,686 shares of the software maker's stock worth $1,890,282,000 after acquiring an additional 36,513 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in Intuit by 4.7% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,841,590 shares of the software maker's stock worth $1,130,718,000 after purchasing an additional 82,419 shares in the last quarter. Pinnacle Financial Partners Inc lifted its stake in Intuit by 3.6% in the 1st quarter. Pinnacle Financial Partners Inc now owns 17,789 shares of the software maker's stock valued at $10,922,000 after purchasing an additional 623 shares during the last quarter. Capitolis Liquid Global Markets LLC acquired a new stake in Intuit in the fourth quarter valued at approximately $109,988,000. Finally, Malaga Cove Capital LLC grew its stake in shares of Intuit by 110.6% during the first quarter. Malaga Cove Capital LLC now owns 874 shares of the software maker's stock worth $537,000 after buying an additional 459 shares during the last quarter. Institutional investors and hedge funds own 83.66% of the company's stock.

About Intuit

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.