Intuit (NASDAQ:INTU) Shares Gap Down After Analyst Downgrade

Intuit Inc. (NASDAQ:INTU)’s stock price gapped down before the market opened on Wednesday after Wolfe Research downgraded the stock from an outperform rating to a peer perform rating. The stock had previously closed at $357.46, but opened at $323.47. Intuit shares last traded at $349.3310, with a volume of 4,085,811 shares traded.

A number of other equities analysts also recently commented on INTU. Citigroup cut their price objective on shares of Intuit from $591.00 to $457.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. Barclays cut their price objective on shares of Intuit from $443.00 to $408.00 and set an “overweight” rating for the company in a research report on Wednesday, August 26th. Jefferies Financial Group cut their price objective on shares of Intuit from $550.00 to $500.00 and set a “buy” rating for the company in a research report on Sunday, August 23rd. Wells Fargo & Company cut their price objective on shares of Intuit from $360.00 to $300.00 and set an “equal weight” rating for the company in a research report on Wednesday, August 26th. Finally, HSBC cut their price objective 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. Seventeen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $434.68.

Insider Transactions at Intuit

In other news, CAO Lauren D. Hotz sold 907 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $346.54, for a total value of $314,311.78. Following the completion of the transaction, the chief accounting officer owned 1,628 shares in the company, valued at $564,167.12. This trade represents a 35.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard L. Dalzell sold 338 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $279.86, for a total transaction of $94,592.68. Following the completion of the transaction, the director owned 12,326 shares of the company’s stock, valued at $3,449,554.36. This represents a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 2,146 shares of company stock valued at $662,666 in the last quarter. Insiders own 2.49% of the company’s stock.

Intuit News Summary

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Intuit announced a partnership with Perplexity to integrate QuickBooks and Mailchimp into Perplexity Computer, an agentic AI assistant. The collaboration could help users move from discovering information to receiving personalized insights and taking actions within Intuit’s software ecosystem. Intuit and Perplexity Team on AI Integrations
• Positive Sentiment: Recent AI-powered product enhancements for mid-market financial management support Intuit’s strategy of using automation and data-driven insights to expand the value of its QuickBooks platform. Intuit unveils AI-powered innovations for mid-market financial management
• Positive Sentiment: A comparison with PayPal argues that Intuit’s broad financial-software ecosystem, recurring customer relationships and AI investments provide a strong foundation for future growth. Intuit or PayPal: Which Fintech Is Built for Future Growth?
• Neutral Sentiment: Analyst commentary notes that INTU has significantly underperformed the Nasdaq over the past year, but expectations for its future remain cautiously positive. Other coverage highlights Intuit’s profitability and market leadership while comparing it with higher-risk AI software companies. Is Intuit Stock Underperforming the Nasdaq?
• Negative Sentiment: Several law firms publicized a securities class action and a September 8 lead-plaintiff deadline involving investors who purchased Intuit shares between February 25, 2025, and June 1, 2026. The notices cite a reassessment of TurboTax’s growth outlook and add legal and reputational uncertainty, although the allegations have not been proven. Intuit Inc. Securities Fraud Lawsuit Deadline
• Negative Sentiment: An Intuit executive sold 906 shares worth approximately $314,000, representing 36% of the executive’s direct holdings before the transaction. While the sale may be routine, its timing can weigh on sentiment amid the stock’s recent decline. An Intuit Executive Sells Over a Third of Their Direct Holdings

Hedge Funds Weigh In On Intuit

Several hedge funds have recently added to or reduced their stakes in INTU. XXEC Inc. purchased a new position in Intuit during the 2nd quarter valued at about $436,740,000. California State Teachers Retirement System grew its holdings in shares of Intuit by 25,506.0% during the second quarter. California State Teachers Retirement System now owns 108,342,405 shares of the software maker’s stock worth $28,277,368,000 after buying an additional 107,919,292 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of Intuit during the second quarter worth about $6,851,859,000. Corient Private Wealth LP purchased a new stake in shares of Intuit during the second quarter worth about $40,545,000. Finally, Norges Bank purchased a new stake in shares of Intuit during the fourth quarter worth about $3,058,407,000. 83.66% of the stock is currently owned by hedge funds and other institutional investors.

Intuit Trading Up 0.4%

The firm has a market capitalization of $98.34 billion, a PE ratio of 21.79, a P/E/G ratio of 0.92 and a beta of 0.97. The company has a quick ratio of 1.45, a current ratio of 1.51 and a debt-to-equity ratio of 0.34. The business’s fifty day moving average price is $307.36 and its 200 day moving average price is $356.13.

Intuit (NASDAQ:INTU) last issued its quarterly earnings results on Tuesday, August 25th. The software maker reported $4.03 EPS for the quarter, topping analysts’ consensus estimates of $3.58 by $0.45. The business had revenue of $4.35 billion during the quarter, compared to the consensus estimate of $4.27 billion. Intuit had a net margin of 21.29% and a return on equity of 25.97%. The company’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.75 earnings per share. Intuit has set its Q1 2027 guidance at 2.440-2.480 EPS and its FY 2027 guidance at 22.880-23.120 EPS. As a group, analysts expect that Intuit Inc. will post 23.07 EPS for the current fiscal year.

Intuit Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Thursday, October 8th will be given a $1.38 dividend. This is a boost from Intuit’s previous quarterly dividend of $1.20. This represents a $5.52 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, October 8th. Intuit’s dividend payout ratio is 33.45%.

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, and TurboTax, a tax-preparation and filing service aimed at individual taxpayers. In addition to these core offerings, Intuit has expanded through acquisitions to provide complementary services such as Credit Karma (consumer credit and financial-product marketplace) and Mailchimp (marketing and commerce tools), and it offers professional-grade tax solutions for accountants and tax preparers.

The company serves a mix of consumers, small and mid-sized businesses and accounting professionals across multiple markets, with a particularly large presence in the United States and an expanding international footprint.