Intuit (NASDAQ:INTU) Shares Gap Up - Should You Buy?

Key Points

• Intuit shares jumped 4.4%: The stock opened at $348.01 after closing at $335.60 and last traded near $353.71.
• Analyst sentiment remains moderately bullish but targets have been cut: Intuit has a consensus “Moderate Buy” rating and a $454.65 target, although several firms lowered their price objectives and TD Cowen maintained a “Hold” rating.
• Investors are watching earnings and legal risks: Upcoming results will provide updates on TurboTax, QuickBooks, revenue growth and AI adoption, while a securities lawsuit alleges potentially misleading statements about TurboTax growth and generative-AI competition.

Shares of Intuit Inc. (NASDAQ:INTU - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $335.60, but opened at $348.01. Intuit shares last traded at $353.7140, with a volume of 454,391 shares changing hands.

Key Intuit News

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Analyst still sees upside: Mizuho lowered its price target from $500 to $430 but maintained an “outperform” rating, implying substantial potential upside from recent levels. Mizuho Intuit Price Target
• Positive Sentiment: Mid-market opportunity remains a longer-term support: Analysts point to a potential nearly $90 billion market, with growth in Intuit’s advanced products and QuickBooks offerings helping offset pressure in its do-it-yourself tax business. Intuit Mid-Market Opportunity
• Neutral Sentiment: Earnings are the next major catalyst: Intuit is scheduled to announce quarterly results, where investors will focus on revenue growth, TurboTax trends, QuickBooks momentum, and the effect of artificial intelligence on its tax and accounting products. Intuit Earnings Announcement
• Negative Sentiment: Legal overhang is weighing on sentiment: Several law firms publicized a securities class-action lawsuit and a September 8 deadline for investors to seek lead-plaintiff status. The allegations involve potentially misleading statements about TurboTax growth and competitive risks from generative artificial intelligence; the claims have not been proven. Intuit Class Action Lawsuit
• Negative Sentiment: More conservative growth assumptions: TD Cowen maintained a “hold” view, citing the possibility that Intuit may reset growth targets as monetization expectations become less aggressive. This adds pressure after the stock’s recent pullback. TD Cowen Intuit Rating

Analyst Ratings Changes

INTU has been the topic of several research analyst reports. Stifel Nicolaus reissued a "hold" rating and issued a $275.00 price objective (down from $375.00) on shares of Intuit in a research report on Wednesday, June 17th. Oppenheimer lowered their target price on Intuit from $558.00 to $406.00 and set an "outperform" rating on the stock in a research note on Thursday, May 21st. Daiwa Securities Group cut their price target on shares of Intuit from $640.00 to $500.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. Wall Street Zen lowered shares of Intuit from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Finally, HSBC reduced their price target on shares of Intuit from $897.00 to $707.00 and set a "buy" rating for the company in a research report on Friday, May 22nd. Twenty investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Intuit presently has an average rating of "Moderate Buy" and a consensus target price of $454.65.

Intuit Trading Up 4.4%

The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $95.84 billion, a P/E ratio of 21.16, a price-to-earnings-growth ratio of 1.09 and a beta of 0.97. The firm's 50-day simple moving average is $292.88 and its 200-day simple moving average is $363.19.

Intuit (NASDAQ:INTU - Get Free Report) last announced its earnings results on Wednesday, May 20th. The software maker reported $12.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $12.57 by $0.23. The company had revenue of $8.56 billion during the quarter, compared to analyst estimates of $8.54 billion. Intuit had a net margin of 21.91% and a return on equity of 25.18%. The firm's quarterly revenue was up 10.4% compared to the same quarter last year. During the same period in the previous year, the business earned $11.65 earnings per share. Intuit has set its Q4 2026 guidance at 3.560-3.620 EPS and its FY 2026 guidance at 23.800-23.850 EPS. Analysts anticipate that Intuit Inc. will post 18.18 EPS for the current year.

Insider Transactions at Intuit

In other Intuit news, Director Richard L. Dalzell sold 284 shares of the company's stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $262.32, for a total transaction of $74,498.88. Following the completion of the transaction, the director owned 11,758 shares of the company's stock, valued at $3,084,358.56. This represents a 2.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 on Tuesday, May 26th. The stock was acquired at an average price of $309.71 per share, with a total value of $154,855.00. Following the acquisition, the director owned 1,750 shares in the company, valued at approximately $541,992.50. This trade represents a 40.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have sold 1,239 shares of company stock valued at $348,354. 2.49% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Intuit

Hedge funds have recently made changes to their positions in the business. Joseph Group Capital Management bought a new stake in Intuit in the fourth quarter valued at $25,000. Fiduciary Financial Advisors bought a new position in Intuit in the 2nd quarter worth $25,000. Intesa Sanpaolo Wealth Management bought a new position in Intuit in the 4th quarter worth $25,000. Osbon Capital Management LLC purchased a new stake in shares of Intuit in the 2nd quarter worth about $26,000. Finally, MidFirst Bank purchased a new stake in shares of Intuit in the 2nd quarter worth about $28,000. 83.66% of the stock is owned by hedge funds and other institutional investors.

About Intuit

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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