Top investors say Intuit Inc. (INTU) ticks everything they need

Intuit Inc. (NASDAQ: INTU) stock jumped 0.12% on Friday to $466.30 against a previous-day closing price of $465.75. With 1.42 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.89 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $467.86 whereas the lowest price it dropped to was $458.20. The 52-week range on INTU shows that it touched its highest point at $716.86 and its lowest point at $339.36 during that stretch. It currently has a 1-year price target of $518.17. With its current market cap of 124.90 billion, INTU has annualized dividend of $2.72 while the current yield stands at 0.58%. Beta for the stock currently stands at 1.17.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of INTU was up-trending over the past week, with a rise of 3.95%, but this was up by 15.16% over a month. Three-month performance surged to 4.10% while six-month performance fell -17.07%. The stock lost -13.01% in the past year, while it has lost -27.51% so far this year. A look at the trailing 12-month EPS for INTU yields 8.81 with Next year EPS estimates of 13.86. For the next quarter, that number is 0.98. This implies an EPS growth rate of 9.20% for this year and 17.97% for next year. EPS is expected to grow by 17.24% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.00%.

Float and Shares Shorts:

At present, 282.00 million INTU shares are outstanding with a float of 274.17 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.56 million, which was 0.91% higher than short shares on Jun 14, 2022. In addition to Mr. Sasan K. Goodarzi as the firm’s CEO, Pres & Director, Mr. Scott D. Cook serves as its Founder & Director.

Institutional Ownership:

Through their ownership of 86.93% of INTU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.75% of INTU, in contrast to 35.97% held by mutual funds. Shares owned by individuals account for 3.88%. As the largest shareholder in INTU with 8.12% of the stake, The Vanguard Group, Inc. holds 22,951,028 shares worth 22,951,028. A second-largest stockholder of INTU, T. Rowe Price Associates, Inc., holds 17,174,391 shares, controlling over 6.07% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in INTU, holding 14,652,606 shares or 5.18% stake. With a 2.79% stake in INTU, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,901,400 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.21% of INTU stock, is the second-largest Mutual Fund holder. It holds 6,260,002 shares valued at 2.41 billion. Invesco QQQ Trust holds 1.45% of the stake in INTU, owning 4,085,689 shares worth 1.57 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2022, INTU reported revenue of $5.63B and operating income of $2.40B. Over the past year, revenue came in at $12.87B while operating income stood at $3.05B. It generated $1.79B net income for the quarter, which came to $2.50B over the last twelve months. The EBITDA in the recently reported quarter was $2.60B and diluted EPS was $6.28. EBITDA for the full year was $3.75B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for INTU since 22 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With INTU analysts setting a high price target of $650.00 and a low target of $450.00, the average target price over the next 12 months is $510.29. Based on these targets, INTU could surge 39.4% to reach the target high and fall by -3.5% to reach the target low. Reaching the average price target will result in a growth of 9.43% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. INTU will report FY 2022 earnings on 08/22/2023. Analysts have provided yearly estimates in a range of $11.83 being high and $11.70 being low. For INTU, this leads to a yearly average estimate of $11.73. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Intuit Inc. surprised analysts by $0.11 when it reported $7.65 EPS against a consensus estimate of $7.54. The surprise factor in the prior quarter was -$0.30. Based on analyst estimates, the high estimate for the next quarter is $1.81 and the low estimate is $0.96. The average estimate for the next quarter is thus $1.03.

Dividends & Yield:

In terms of dividends, INTU has a current ratio of $2.72, which is $2.72 over the trailing 12-months, while a dividend of $1.98 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and INTU currently yields $0.58. In the past year, INTU’s dividend yield has been $0.58, but when looking at the stock over the past five years, its yield has been $0.68. Accordingly, INTU has a current buyback yield of $1.37. This was $1.37 for the TTM, and it was $0.88 for the past five years.

Summary of Insider Activity:

Insiders traded INTU stock several times over the past three months with 41 Buys and 14 Sells. In these transactions, 21,016 shares were bought while 22,191 shares were sold. The number of buy transactions has increased to 196 while that of sell transactions has risen to 143 over the past year. The total number of shares bought during that period was 406,642 while 366,855 shares were sold.

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