Intuit (NASDAQ:INTU) Shares Gap Down - Time to Sell?

Key Points

• Intuit shares gapped down before trading on Wednesday, opening at $384.45 after closing at $399.71 the prior day, as investors reacted to fresh concerns around the company.
• The main pressure came from reports that Intuit plans to cut 17% of its global workforce as part of a restructuring effort aimed at improving efficiency and refocusing on higher-priority AI-driven growth initiatives.
• Despite the stock drop, analysts still see upside potential: Intuit recently beat earnings expectations, and Wall Street’s consensus remains a Moderate Buy with an average price target of $634.26.

Intuit Inc. (NASDAQ:INTU - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $399.71, but opened at $384.45. Intuit shares last traded at $387.4660, with a volume of 707,732 shares.

More Intuit News

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Intuit continues to emphasize AI-driven growth, with the restructuring aimed at boosting efficiency and refocusing resources on higher-priority initiatives. Exclusive: Intuit to cut 17% of global jobs to streamline operations, memo shows
• Positive Sentiment: Analysts heading into earnings were expecting strong quarterly performance, with forecasts calling for higher EPS and solid revenue growth, which could support sentiment if results beat estimates. Intuit Stock Falls After Report Says Company To Cut 17% Of Workforce
• Neutral Sentiment: Intuit was also set to report fiscal third-quarter earnings after the close, keeping investors focused on whether its core businesses like QuickBooks, TurboTax, and Credit Karma can sustain momentum. Intuit Likely To Report Higher Q3 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: The company has also been expanding QuickBooks with new AI-powered workforce tools, which may help longer-term growth but is not the main driver of today’s move. Intuit Expands QuickBooks With AI: Will It Accelerate Growth?
• Negative Sentiment: The job cuts are a sign of operational restructuring and have raised concerns about near-term disruption and the company’s growth outlook, contributing to the stock’s decline. Intuit Stock (INTU) Drops on Plans to Cut 17% Global Workforce ahead of Q3 Results

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on INTU shares. Stifel Nicolaus reduced their price objective on shares of Intuit from $800.00 to $500.00 and set a "buy" rating for the company in a research report on Friday, February 27th. Royal Bank Of Canada decreased their target price on Intuit from $850.00 to $600.00 and set an "outperform" rating on the stock in a report on Friday, February 27th. KeyCorp cut their price target on shares of Intuit from $750.00 to $520.00 and set an "overweight" rating on the stock in a report on Friday, February 27th. Daiwa Securities Group reduced their price objective on Intuit from $800.00 to $640.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. Finally, BMO Capital Markets decreased their target price on shares of Intuit from $624.00 to $550.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Intuit has an average rating of "Moderate Buy" and an average price target of $634.26.

Intuit Stock Performance

The company has a market cap of $106.27 billion, a P/E ratio of 24.99, a price-to-earnings-growth ratio of 1.62 and a beta of 1.04. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.28. The stock's 50-day moving average price is $410.70 and its 200 day moving average price is $516.31.

Intuit (NASDAQ:INTU - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The software maker reported $4.15 EPS for the quarter, beating analysts' consensus estimates of $3.68 by $0.47. Intuit had a net margin of 21.57% and a return on equity of 24.23%. The company had revenue of $4.65 billion for the quarter, compared to analyst estimates of $4.53 billion. During the same quarter last year, the firm posted $3.32 earnings per share. The company's quarterly revenue was up 17.4% compared to the same quarter last year. Intuit has set its Q3 2026 guidance at 12.450-12.510 EPS and its FY 2026 guidance at 22.980-23.180 EPS. As a group, research analysts expect that Intuit Inc. will post 17.44 EPS for the current fiscal year.

Intuit Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, April 17th. Shareholders of record on Thursday, April 9th were issued a $1.20 dividend. The ex-dividend date of this dividend was Thursday, April 9th. This represents a $4.80 dividend on an annualized basis and a yield of 1.2%. Intuit's dividend payout ratio is 31.09%.

Insiders Place Their Bets

In other Intuit news, Director Richard L. Dalzell sold 333 shares of the stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $440.40, for a total value of $146,653.20. Following the completion of the sale, the director directly owned 13,253 shares of the company's stock, valued at $5,836,621.20. This represents a 2.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.49% of the stock is currently owned by company insiders.

Institutional Trading of Intuit

Several institutional investors have recently modified their holdings of the company. Joseph Group Capital Management bought a new stake in Intuit in the fourth quarter valued at about $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in shares of Intuit in the fourth quarter valued at approximately $25,000. HHM Wealth Advisors LLC boosted its holdings in shares of Intuit by 75.0% during the 1st quarter. HHM Wealth Advisors LLC now owns 70 shares of the software maker's stock worth $30,000 after buying an additional 30 shares during the period. Whipplewood Advisors LLC bought a new position in Intuit during the 1st quarter worth $30,000. Finally, MTM Investment Management LLC increased its position in Intuit by 135.0% during the third quarter. MTM Investment Management LLC now owns 47 shares of the software maker's stock worth $32,000 after acquiring an additional 27 shares during the period. Institutional investors and hedge funds own 83.66% of the company's stock.

Intuit Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.