Intuit (NASDAQ:INTU) Cut to “Neutral” at Bank of America

Bank of America lowered shares of Intuit (NASDAQ:INTU) from a buy rating to a neutral rating in a research report sent to investors on Wednesday, Marketbeat.com reports. The brokerage currently has $360.00 price target on the software maker’s stock.

A number of other equities research analysts have also recently issued reports on INTU. Piper Sandler boosted their target price on shares of Intuit from $250.00 to $290.00 and gave the company an “underweight” rating in a research report on Wednesday. BNP Paribas Exane lowered their price target on shares of Intuit from $463.00 to $315.00 and set a “neutral” rating on the stock in a research report on Thursday, May 21st. Morgan Stanley dropped their price objective on shares of Intuit from $335.00 to $315.00 and set an “equal weight” rating for the company in a research note on Wednesday. Freedom Capital downgraded shares of Intuit from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 21st. Finally, Weiss Ratings downgraded shares of Intuit from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, June 11th. Seventeen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $434.68.

Intuit Stock Performance

NASDAQ:INTU opened at $358.06 on Wednesday. The stock has a market cap of $97.94 billion, a P/E ratio of 21.70, a PEG ratio of 0.90 and a beta of 0.97. The stock has a 50 day simple moving average of $307.36 and a 200 day simple moving average of $356.70. The company has a current ratio of 1.51, a quick ratio of 1.45 and a debt-to-equity ratio of 0.34. Intuit has a 1-year low of $252.84 and a 1-year high of $705.08.

Intuit (NASDAQ:INTU) last released its quarterly earnings results on Tuesday, August 25th. The software maker reported $4.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.58 by $0.45. Intuit had a return on equity of 25.97% and a net margin of 21.29%.The business had revenue of $4.35 billion during the quarter, compared to the consensus estimate of $4.27 billion. During the same period in the previous year, the company posted $2.75 EPS. The firm’s quarterly revenue was up 13.7% on a year-over-year basis. Intuit has set its Q1 2027 guidance at 2.440-2.480 EPS and its FY 2027 guidance at 22.880-23.120 EPS. Research analysts anticipate that Intuit will post 23 earnings per share for the current year.

Intuit Increases Dividend

The business also recently declared 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. The ex-dividend date is Thursday, October 8th. This is an increase from Intuit’s previous quarterly dividend of $1.20. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.5%. Intuit’s dividend payout ratio (DPR) is 29.09%.

Insider Transactions at Intuit

In related news, CAO Lauren D. Hotz sold 907 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $346.54, for a total transaction of $314,311.78. Following the completion of the sale, the chief accounting officer owned 1,628 shares of the company’s stock, valued at $564,167.12. This represents a 35.78% 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, Director Richard L. Dalzell sold 338 shares of the firm’s 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 directly owned 12,326 shares in the company, valued at approximately $3,449,554.36. This represents a 2.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 2,146 shares of company stock valued at $662,666. 2.49% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in INTU. Joseph Group Capital Management acquired a new stake in shares of Intuit in the 4th quarter valued at $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Intuit in the 4th quarter valued at $25,000. Pin Oak Investment Advisors Inc. acquired a new position in shares of Intuit during the 3rd quarter worth $33,000. Birchwood Financial Partners Inc. acquired a new position in shares of Intuit during the 4th quarter worth $33,000. Finally, Fiduciary Financial Advisors bought a new stake in shares of Intuit during the 2nd quarter worth $25,000. 83.66% of the stock is currently owned by institutional investors and hedge funds.

Intuit News Roundup

Here are the key news stories impacting Intuit this week:

• Positive Sentiment: Management’s planned strategy to reduce initial revenue per TurboTax do-it-yourself customer could help restore customer volume and support longer-term growth. The approach suggests the weakness is a strategic reset focused on winning back users rather than an immediate deterioration in the overall business. Intuit is Lowering TurboTax Revenue per User to Win Customers
• Positive Sentiment: Analysts and investors continue to point to Intuit’s mid-market expansion, artificial-intelligence adoption and substantial share repurchases as potential offsets to slower consumer-tax growth. One analysis characterized the earnings reset as a pivot rather than a breakdown in the company’s fundamentals. Intuit’s Earnings Reset May Be More Pivot Than Plunge
• Neutral Sentiment: Intuit is reorganizing its reporting structure, with Mailchimp becoming a separate reportable segment beginning in fiscal 2027. This may improve transparency around the company’s different growth engines but does not by itself change financial performance. Mailchimp Becomes a Separate Operating Segment
• Negative Sentiment: TurboTax underperformance and competitive pricing pressure remain the primary concerns. Fiscal 2027 revenue growth is expected at only 9% to 10%, with TurboTax growth projected at 2% to 3%; near-term revenue guidance also trailed analyst estimates. Intuit’s Real Problem Is Not on Its Income Statement
• Negative Sentiment: Several firms lowered their ratings or price targets, including downgrades from Bank of America, JPMorgan and Wolfe Research and target reductions from Oppenheimer and Truist. The analyst actions reflect concern that the slower-growth outlook warrants a lower valuation.
• Negative Sentiment: Multiple law firms publicized securities-fraud class-action deadlines for September 8, alleging that Intuit misrepresented the strength of its tax-related business. These announcements add reputational and potential legal overhang, although the allegations have not been proven.

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.