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

Intuit Inc. (NASDAQ:INTU)’s stock price 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.

Several other analysts have also weighed in on INTU. Barclays lowered their target price on Intuit from $443.00 to $408.00 and set an “overweight” rating on the stock in a report on Wednesday. Evercore reissued an “outperform” rating on shares of Intuit in a research report on Tuesday, August 18th. Wells Fargo & Company cut their price target on Intuit from $360.00 to $300.00 and set an “equal weight” rating for the company in a report on Wednesday. Deutsche Bank Aktiengesellschaft lowered their price objective on Intuit from $530.00 to $425.00 and set a “buy” rating for the company in a research report on Wednesday, August 19th. Finally, Susquehanna reduced their target price on Intuit from $550.00 to $427.00 and set a “positive” rating on the stock in a research report on Monday, July 20th. 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 company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $436.68.

Insider Buying and Selling at Intuit

In related news, Director Richard L. Dalzell sold 284 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $262.32, for a total transaction of $74,498.88. Following the sale, the director directly owned 11,758 shares in the company, valued at approximately $3,084,358.56. This trade represents a 2.36% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,239 shares of company stock valued at $348,354 over the last ninety days. 2.49% of the stock is owned by corporate insiders.

Trending Headlines about 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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. XXEC Inc. acquired a new stake in Intuit in the second quarter valued at $436,740,000. California State Teachers Retirement System increased its position in shares of Intuit by 25,506.0% in the 2nd quarter. California State Teachers Retirement System now owns 108,342,405 shares of the software maker’s stock worth $28,277,368,000 after purchasing an additional 107,919,292 shares during the last quarter. BlackRock Inc. bought a new stake in shares of Intuit in the 2nd quarter worth about $6,851,859,000. Corient Private Wealth LP acquired a new stake in shares of Intuit in the 2nd quarter valued at about $40,545,000. Finally, Norges Bank acquired a new position in Intuit in the fourth quarter worth about $3,058,407,000. Hedge funds and other institutional investors own 83.66% of the company’s stock.

Intuit Stock Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.45 and a quick ratio of 1.45. The company has a fifty day moving average of $302.38 and a two-hundred day moving average of $357.99. The stock has a market capitalization of $94.86 billion, a P/E ratio of 21.02, a price-to-earnings-growth ratio of 1.16 and a beta of 0.97.

Intuit (NASDAQ:INTU) last issued its quarterly earnings results 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 business had revenue of $4.35 billion during the quarter, compared to the consensus estimate of $4.27 billion. Intuit had a return on equity of 25.18% and a net margin of 21.91%.The business’s quarterly revenue was up 13.7% on a year-over-year basis. During the same period in the previous year, the business earned $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, equities analysts anticipate that Intuit Inc. will post 18.19 EPS for the current year.

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.