Intuit (INTU) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Intuit (NASDAQ:INTU) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday morning.

According to Zacks, “Intuit's Q2 results benefited from solid online ecosystem revenue growth. Impressive growth across its Small Business and Self-Employed, and Consumer Tax segments is a tailwind. TurboTax Live offering also is likely to be a tailwind to the Consumer tax business. A solid momentum of the company’s lending product, QuickBooks Capital is a positive for the company. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate more stable revenues over the long run. However, high costs and expenses remain a major concern. Moreover, the company expects QuickBooks’ desktop unit to decline in single digits, and desktop ecosystem revenues to be flat in fiscal 2019. Furthermore, in the first and fourth quarters, the company incurs losses as revenues from the tax business remain at their lowest point during these periods”

Other research analysts also recently issued reports about the stock. BidaskClub upgraded shares of Intuit from a hold rating to a buy rating in a research report on Saturday, December 1st. Argus cut their target price on shares of Intuit from $265.00 to $245.00 and set a buy rating on the stock in a research report on Wednesday, November 21st. Deutsche Bank cut their target price on shares of Intuit from $265.00 to $250.00 and set a buy rating on the stock in a research report on Tuesday, November 20th. Morgan Stanley upgraded shares of Intuit from an underweight rating to an equal weight rating and set a $225.00 price target on the stock in a research report on Monday, February 4th. Finally, Credit Suisse Group reiterated a hold rating and issued a $255.00 price target on shares of Intuit in a research report on Thursday, February 21st. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, eleven have assigned a buy rating and two have assigned a strong buy rating to the stock. Intuit currently has a consensus rating of Buy and a consensus price target of $228.16.

Intuit stock traded up $3.28 during trading hours on Wednesday, reaching $250.41. 1,863,583 shares of the company’s stock traded hands, compared to its average volume of 1,436,176. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.13. Intuit has a fifty-two week low of $162.59 and a fifty-two week high of $252.02. The company has a market cap of $65.12 billion, a PE ratio of 55.28, a PEG ratio of 2.93 and a beta of 1.16.

Intuit (NASDAQ:INTU) last released its earnings results on Thursday, February 21st. The software maker reported $1.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.44. Intuit had a net margin of 22.89% and a return on equity of 55.29%. The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same period in the prior year, the company posted $0.35 EPS. Research analysts forecast that Intuit will post 5.28 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 18th. Investors of record on Wednesday, April 10th will be given a $0.47 dividend. The ex-dividend date is Tuesday, April 9th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 0.75%. Intuit’s dividend payout ratio is 41.50%.

In other Intuit news, Director Dennis D. Powell sold 4,083 shares of the firm’s stock in a transaction that occurred on Wednesday, February 27th. The shares were sold at an average price of $248.96, for a total transaction of $1,016,503.68. Following the sale, the director now directly owns 3,550 shares in the company, valued at approximately $883,808. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Henry Tayloe Stansbury sold 3,650 shares of the firm’s stock in a transaction that occurred on Friday, December 21st. The stock was sold at an average price of $188.94, for a total transaction of $689,631.00. Following the sale, the executive vice president now owns 3,383 shares in the company, valued at $639,184.02. The disclosure for this sale can be found here. Insiders sold a total of 8,656 shares of company stock worth $1,934,208 over the last quarter. 4.60% of the stock is currently owned by corporate insiders.

Hedge funds have recently made changes to their positions in the business. Coastline Trust Co raised its holdings in Intuit by 6.7% during the 4th quarter. Coastline Trust Co now owns 3,180 shares of the software maker’s stock worth $626,000 after buying an additional 200 shares during the period. Parkside Financial Bank & Trust grew its stake in shares of Intuit by 16.6% during the 4th quarter. Parkside Financial Bank & Trust now owns 394 shares of the software maker’s stock worth $77,000 after acquiring an additional 56 shares in the last quarter. Nisa Investment Advisors LLC grew its stake in shares of Intuit by 3.2% during the 4th quarter. Nisa Investment Advisors LLC now owns 131,409 shares of the software maker’s stock worth $25,868,000 after acquiring an additional 4,038 shares in the last quarter. Sumitomo Mitsui Asset Management Company LTD grew its stake in shares of Intuit by 78.0% during the 4th quarter. Sumitomo Mitsui Asset Management Company LTD now owns 104,014 shares of the software maker’s stock worth $20,475,000 after acquiring an additional 45,583 shares in the last quarter. Finally, Legal & General Group Plc grew its stake in shares of Intuit by 3.0% during the 3rd quarter. Legal & General Group Plc now owns 1,199,350 shares of the software maker’s stock worth $272,678,000 after acquiring an additional 34,739 shares in the last quarter. Hedge funds and other institutional investors own 87.66% of the company’s stock.

About Intuit

Intuit Inc provides financial management and compliance products and services for small businesses, consumers, self-employed, and accounting professionals in the United States, Canada, and internationally. The company's Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Enterprise, a hosted or server-based solution and QuickBooks Advanced, an online enterprise solution; QuickBooks Self-Employed solution; and QuickBooks Online Accountant and QuickBooks Accountant Desktop Plus solutions; payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state payroll tax forms.

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