Farallon Capital Management LLC has reduced its holdings in Intuit Inc. by 9.1% during the third quarter, according to the firm’s latest Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor now owns 488,088 shares of the financial software maker, down from 536,658 shares after selling 48,570 shares in the quarter. This adjustment brings Intuit’s share to represent 1.4% of Farallon’s total holdings, making it the firm’s 20th largest investment, with a current estimated value of approximately $333.32 million.
Several other institutional investors have also recently adjusted their positions in Intuit. Tortoise Investment Management LLC significantly increased its stake by 540.0% during the second quarter, acquiring 32 shares now valued at $25,000. Additionally, Sagard Holdings Management Inc. established a new position with a value of $28,000, while Total Investment Management Inc. and Kilter Group LLC added new stakes valued at $33,000 and $35,000, respectively. Overall, institutional investors and hedge funds now own 83.66% of Intuit’s stock.
Analyst Expectations and Price Performance
Wall Street analysts have been actively reassessing Intuit’s stock performance. KeyCorp has lowered its price target from $750.00 to $520.00, maintaining an “overweight” rating. Deutsche Bank has similarly reduced its target from $850.00 to $600.00 while still issuing a “buy” rating. Stifel Nicolaus has also revised its target down to $500.00 with a “buy” recommendation. In contrast, Rothschild & Co Redburn has upgraded Intuit from a “neutral” rating to a “buy,” increasing its price target to $700.00.
As of now, one analyst has given Intuit a Strong Buy rating, while twenty-five others have assigned a Buy rating. Five analysts have issued Hold ratings, and one has rated it as a Sell. According to MarketBeat, the stock currently holds an average rating of “Moderate Buy” with a consensus price target of $634.26.
As the market opened on Monday, Intuit’s stock was trading at $439.96. The company boasts a market capitalization of $121.67 billion and a debt-to-equity ratio of 0.28. The firm reported a price-to-earnings ratio of 28.49 and has experienced a year-to-date performance fluctuation, with a low of $349.00 and a high of $813.70 over the past year.
Recent Earnings and Dividends
Intuit last reported its earnings results on February 26, 2024, revealing earnings per share (EPS) of $4.15, exceeding the consensus estimate of $3.68 by $0.47. The company generated revenue of $4.65 billion, surpassing analyst expectations of $4.53 billion. Year-over-year, Intuit’s revenue climbed by 17.4%, with a net margin of 21.57% and a return on equity of 24.23%.
Looking ahead, Intuit has provided guidance for Q3 2026, projecting an EPS of $12.450-$12.510, and for FY 2026, it forecasts an EPS between $22.980-$23.180. Analysts collectively expect Intuit to report an average EPS of 14.09 for the current fiscal year.
In addition to its financial performance, Intuit announced a quarterly dividend of $1.20 per share, payable on April 17, 2024. Shareholders of record on April 9, 2024 will receive this dividend, representing an annualized payout of $4.80 and a yield of 1.1%. The company’s dividend payout ratio currently stands at 31.09%.
Recent media coverage has indicated a positive outlook for Intuit, largely due to its partnership with Anthropic to develop AI financial agents, enhancing its product offerings and potential revenue streams. However, some analysts have expressed caution following management’s lower-than-expected profit guidance for Q3, which has contributed to recent stock volatility.
In terms of insider activity, Director Scott D. Cook sold 1,402 shares at an average price of $668.02, totaling approximately $936,564. Additionally, CEO Sasan K. Goodarzi sold 41,000 shares for around $26.65 million, reducing his ownership significantly.
Intuit Inc., headquartered in Mountain View, California, is a leading provider of cloud-based financial management and compliance products for individuals and businesses. Founded in 1983, the company has evolved from offering desktop tax and accounting software to delivering a comprehensive suite of online financial tools, including QuickBooks, TurboTax, and Mint.
