Intuit (NASDAQ:INTU) Cut to Neutral at JPMorgan Chase & Co.

JPMorgan Chase & Co. lowered shares of Intuit (NASDAQ:INTU) from an overweight rating to a neutral rating in a research note issued to investors on Wednesday morning, MarketBeat.com reports. JPMorgan Chase & Co. currently has $331.00 price target on the software maker’s stock, down from their prior price target of $605.00.

Other research analysts also recently issued reports about the stock. Citigroup cut their target price on shares of Intuit from $591.00 to $457.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. Northcoast Research lowered their price target on shares of Intuit from $575.00 to $465.00 and set a “buy” rating for the company in a research report on Thursday, May 21st. KeyCorp dropped their price target on shares of Intuit from $520.00 to $450.00 and set an “overweight” rating for the company in a research note on Thursday, May 21st. Bank of America began coverage on shares of Intuit in a report on Wednesday, May 27th. They issued a “buy” rating and a $400.00 price objective on the stock. Finally, Jefferies Financial Group reduced their price objective on shares of Intuit from $550.00 to $500.00 and set a “buy” rating on the stock in a research note on Sunday, August 23rd. Seventeen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Intuit currently has an average rating of “Hold” and a consensus target price of $434.68.

Intuit Trading Up 2.9%

INTU stock opened at $358.06 on Wednesday. The company has a quick ratio of 1.45, a current ratio of 1.51 and a debt-to-equity ratio of 0.34. Intuit has a twelve month low of $252.84 and a twelve month high of $705.08. The company 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 business has a fifty day moving average of $307.36 and a 200-day moving average of $356.70.

Intuit (NASDAQ:INTU) last posted 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. The business had revenue of $4.35 billion for the quarter, compared to analysts’ expectations of $4.27 billion. Intuit had a return on equity of 25.97% and a net margin of 21.29%.The firm’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same quarter last year, the business earned $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, equities research analysts expect that Intuit will post 23 EPS for the current year.

Intuit Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Thursday, October 8th will be given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Thursday, October 8th. This is an increase from Intuit’s previous quarterly dividend of $1.20. Intuit’s dividend payout ratio is presently 29.09%.

Insider Activity

In other news, CAO Lauren D. Hotz sold 907 shares of the company’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $346.54, for a total value of $314,311.78. Following the completion of the sale, the chief accounting officer directly owned 1,628 shares of the company’s stock, valued at $564,167.12. This represents a 35.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Richard L. Dalzell sold 338 shares of the stock in a transaction that occurred on 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 sale, the director owned 12,326 shares in the company, valued at $3,449,554.36. This represents a 2.67% decrease in their ownership of the stock. 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 have sold a total of 2,146 shares of company stock valued at $662,666 over the last 90 days. Corporate insiders own 2.49% of the company’s stock.

Institutional Investors Weigh In On Intuit

Several hedge funds have recently bought and sold shares of INTU. Rakuten Investment Management Inc. grew its stake in Intuit by 522.3% in the fourth quarter. Rakuten Investment Management Inc. now owns 51,697 shares of the software maker’s stock valued at $34,852,000 after acquiring an additional 43,389 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Intuit by 20.3% in the fourth quarter. Bank of New York Mellon Corp now owns 2,791,212 shares of the software maker’s stock worth $1,848,954,000 after acquiring an additional 471,451 shares in the last quarter. Vestcor Inc raised its position in shares of Intuit by 79.1% during the fourth quarter. Vestcor Inc now owns 20,717 shares of the software maker’s stock worth $13,723,000 after purchasing an additional 9,148 shares during the period. Janney Montgomery Scott LLC raised its position in shares of Intuit by 119.5% during the first quarter. Janney Montgomery Scott LLC now owns 86,618 shares of the software maker’s stock worth $37,452,000 after purchasing an additional 47,148 shares during the period. Finally, O Shaughnessy Asset Management LLC lifted its holdings in shares of Intuit by 13.2% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 59,974 shares of the software maker’s stock valued at $39,728,000 after purchasing an additional 6,999 shares in the last quarter. 83.66% of the stock is currently owned by institutional investors and hedge funds.

Key Intuit News

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.

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.