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

Shares of Intuit Inc. (NASDAQ:INTU) gapped down prior to trading on Wednesday after Bank of America downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $357.46, but opened at $323.47. Bank of America now has a $360.00 price target on the stock. Intuit shares last traded at $349.3310, with a volume of 4,085,811 shares traded.

A number of other research firms have also recently weighed in on INTU. Argus dropped their target price on shares of Intuit from $580.00 to $480.00 and set a “buy” rating on the stock in a research note on Friday, May 22nd. JPMorgan Chase & Co. lowered Intuit from an “overweight” rating to a “neutral” rating and decreased their price objective for the stock from $605.00 to $331.00 in a report on Wednesday. TD Cowen restated a “buy” rating on shares of Intuit in a research note on Tuesday, August 18th. Morgan Stanley set a $315.00 price target on shares of Intuit in a research report on Wednesday. Finally, Freedom Capital lowered shares of Intuit from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Eighteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $436.68.

Insider Buying and Selling at Intuit

In related news, Director Richard L. Dalzell sold 338 shares of the business’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $279.86, for a total transaction of $94,592.68. Following the completion of the transaction, the director directly owned 12,326 shares in the company, valued at $3,449,554.36. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,239 shares of company stock valued at $348,354 over the last quarter. Corporate insiders own 2.49% of the company’s stock.

Key Headlines Impacting Intuit

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Intuit reported fourth-quarter revenue of $4.35 billion, up 13.7% year over year and above the $4.27 billion consensus estimate. Adjusted EPS of $4.03 also exceeded expectations of approximately $3.58. Fiscal 2026 revenue reached $21.45 billion, while the company repurchased $5.5 billion of stock and approved a quarterly dividend of $1.38 per share. Intuit earnings results
• Positive Sentiment: Management said roughly 75% of enterprise customers use Intuit’s AI agents monthly, supporting the company’s strategy to expand Intuit Intelligence across QuickBooks and other products. Analysts remain divided, with Oppenheimer maintaining an “outperform” rating despite lowering its price target to $380. Intuit AI adoption
• Neutral Sentiment: Intuit’s fiscal 2027 revenue forecast of $23.28 billion to $23.51 billion implies approximately 9% to 10% growth, below the roughly $23.7 billion analyst consensus and the company’s 14% fiscal 2026 growth rate. Management described the slowdown as a deliberate “reset to reaccelerate” customer growth and gain market share.
• Neutral Sentiment: Analyst sentiment is mixed: Piper Sandler raised its target to $290 but kept an “underweight” rating, while Oppenheimer cut its target to $380 but retained “outperform.” This highlights uncertainty over Intuit’s growth trajectory and valuation. Analyst price target updates
• Negative Sentiment: The main catalyst for the decline is fiscal 2027 guidance: adjusted EPS guidance of $22.88 to $23.12 is well below the approximately $26.04 consensus, while first-quarter guidance also trails estimates. Intuit expects investments in customer acquisition, potentially lower pricing and market-share gains to weigh on near-term revenue and margins. Intuit annual forecast
• Negative Sentiment: TurboTax customer losses tied to pricing, heightened AI competition and expectations for zero growth at Mailchimp raise concerns about Intuit’s consumer-tax franchise and broader growth foundation. TurboTax customer losses
• Negative Sentiment: Several law firms have publicized securities class actions alleging that Intuit misrepresented TurboTax momentum, pricing pressures or AI-related risks. The September 8 lead-plaintiff deadline creates a legal overhang, although the allegations have not been proven. Intuit securities class action

Hedge Funds Weigh In On Intuit

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Betterment LLC increased its holdings in shares of Intuit by 2.1% in the 3rd quarter. Betterment LLC now owns 779 shares of the software maker’s stock valued at $532,000 after acquiring an additional 16 shares during the period. One Capital Management LLC lifted its position in Intuit by 2.7% during the 3rd quarter. One Capital Management LLC now owns 681 shares of the software maker’s stock worth $465,000 after acquiring an additional 18 shares during the period. Quadcap Wealth Management LLC grew its stake in shares of Intuit by 1.0% in the 3rd quarter. Quadcap Wealth Management LLC now owns 1,801 shares of the software maker’s stock valued at $1,230,000 after purchasing an additional 18 shares during the last quarter. Oakworth Capital Inc. grew its stake in shares of Intuit by 3.4% in the 4th quarter. Oakworth Capital Inc. now owns 676 shares of the software maker’s stock valued at $448,000 after purchasing an additional 22 shares during the last quarter. Finally, Prentice Wealth Management LLC increased its holdings in shares of Intuit by 2.7% in the fourth quarter. Prentice Wealth Management LLC now owns 850 shares of the software maker’s stock valued at $563,000 after purchasing an additional 22 shares during the period. Hedge funds and other institutional investors own 83.66% of the company’s stock.

Intuit Stock Performance

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 stock has a fifty day moving average price of $302.38 and a 200-day moving average price of $357.99. The firm has a market cap of $94.86 billion, a price-to-earnings ratio of 21.02, a price-to-earnings-growth ratio of 1.16 and a beta of 0.97.

Intuit (NASDAQ:INTU) last posted its quarterly earnings data on Tuesday, August 25th. The software maker reported $4.03 earnings per share for the quarter, beating analysts’ consensus estimates of $3.58 by $0.45. The firm had revenue of $4.35 billion for the quarter, compared to analyst estimates of $4.27 billion. Intuit had a net margin of 21.91% and a return on equity of 25.18%. Intuit’s quarterly revenue was up 13.7% on a year-over-year basis. During the same period last year, the firm posted $2.75 EPS. Intuit has set its Q1 2027 guidance at 2.440-2.480 EPS and its FY 2027 guidance at 22.880-23.120 EPS. On average, analysts expect that Intuit Inc. will post 18.19 earnings per share for the current fiscal year.

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.