Farallon Capital Management LLC has decreased its stake in Intuit Inc. (NASDAQ: INTU) by 9.1% during the third quarter of 2023, according to a recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 488,088 shares of the financial software company, which is valued at approximately $333.32 million after selling 48,570 shares during the quarter. Intuit represents 1.4% of Farallon’s overall portfolio, making it the firm’s 20th largest investment.
In addition to Farallon’s adjustments, other institutional investors have also shifted their positions in Intuit. For instance, Tortoise Investment Management LLC increased its holdings by an impressive 540% during the second quarter, acquiring a total of 32 shares worth $25,000. Meanwhile, Sagard Holdings Management Inc. and Total Investment Management Inc. have each established new positions valued at $28,000 and $33,000 respectively.
Currently, institutional investors and hedge funds collectively hold 83.66% of Intuit’s stock.
Analysts Adjust Price Targets Amid Market Changes
Several research firms have provided updates on Intuit’s stock. KeyCorp recently reduced its price target from $750.00 to $520.00, maintaining an “overweight” rating. Similarly, Deutsche Bank Aktiengesellschaft lowered its price objective from $850.00 to $600.00 while retaining a “buy” rating. Stifel Nicolaus also decreased its target from $800.00 to $500.00.
Conversely, Rothschild & Co Redburn upgraded its rating from “neutral” to “buy” and increased the target from $670.00 to $700.00. Currently, one analyst rates the stock as a Strong Buy, while twenty-five analysts give it a Buy rating. The consensus rating is “Moderate Buy,” with an average price target of $634.26.
Intuit’s Financial Performance and Future Guidance
On March 10, 2024, Intuit’s stock opened at $439.96. The company has a market capitalization of $121.67 billion, with a price-to-earnings ratio of 28.49. It has reported a 1-year low of $349.00 and a high of $813.70.
In its recent earnings report, Intuit posted earnings of $4.15 per share for the last quarter, surpassing analysts’ expectations of $3.68 by $0.47. Revenue for the quarter reached $4.65 billion, exceeding estimates of $4.53 billion. The firm reported a net margin of 21.57% and a return on equity of 24.23%, with a year-over-year revenue increase of 17.4%.
Looking ahead, Intuit has provided guidance for the third quarter of fiscal year 2026, projecting earnings per share between $12.450 and $12.510, and for the fiscal year 2026, between $22.980 and $23.180. Analysts expect Intuit to post earnings of $14.09 per share for the current fiscal year.
The company also announced a quarterly dividend of $1.20 per share, payable on April 17, 2024, to shareholders of record as of April 9, 2024. This equates to an annualized dividend of $4.80 and a yield of 1.1%. The dividend payout ratio currently stands at 31.09%.
As market sentiment shifts, analysts continue to monitor Intuit’s performance closely, especially following recent insider sales and its guidance that fell short of Wall Street expectations.
