Intuit's Dividend Hike and Strong Earnings Drive Analyst Confidence

Intuit Inc. (NASDAQ:INTU) has received a consensus rating of "Moderate Buy" from analysts, with twenty out of twenty-five brokerages classifying the stock as buy or strong buy. The software company recently opened trading at $659.54, boasting a market capitalization of approximately $183.98 billion, with its 12-month high reaching $813.70. In a notable move, Intuit announced an increase in its quarterly dividend to $1.20 per share, indicating a dividend yield of 0.7%, which marks a substantial rise from the previous dividend rate of $1.04 declared quarterly.

Research analysts have adjusted their forecasts on the stock, with KeyCorp, Bank of America, Citigroup, Stifel Nicolaus, and UBS Group all revising their target prices recently. Notably, KeyCorp set an "overweight" rating while reducing its target price from $850.00 to $825.00. Bank of America altered its prediction from $875.00 to $800.00 and maintained a "buy" rating on the stock. Citigroup followed suit, adjusting its target from $815.00 to $803.00 and setting a "buy" rating. Similarly, Stifel Nicolaus changed its price target from $850.00 to $800.00 but sustained a "buy" recommendation. UBS Group set a "neutral" rating, decreasing its target price from $750.00 to $725.00.

Intuit (NASDAQ:INTU) recently disclosed its quarterly earnings results, noting $2.75 earnings per share, surpassing analysts' estimates of $2.66. The company achieved a revenue of $3.83 billion for the quarter, outshining the predicted $3.75 billion, and posted a notable year-over-year revenue increase of 20.3%. Intuit also shared guidance for Q1 2026, estimating an EPS range of 3.050 to 3.120, while for FY 2026, the forecast EPS is between 22.980 and 23.180. Analysts predict that Intuit will achieve an EPS of 14.09 for the current fiscal year.

The company has increased its quarterly dividend, to be paid on October 17th, with stockholders of record by October 9th receiving $1.20 per share. This annualized dividend totals $4.80, representing a yield of 0.7%. This dividend increase from the previous $1.04 per share highlights the company’s commitment to returning value to shareholders, and Intuit’s payout ratio is presently 30.28%.

In other developments, Intuit’s corporate insiders have been active in trading company stock. EVP Marianna Tessel sold 34,329 shares at an average price of $760.84, amounting to $26,118,876.36. Following this transaction, Tessel owns 40,767 shares, valued at approximately $31,017,164.28. Additionally, EVP Laura A. Fennell disposed of 25,648 shares at an average price of $752.25, yielding a total of $19,293,708.00. After this transaction, Fennell maintains 22,796 shares valued at roughly $17,148,291. Over the last 90 days, insiders have executed sales totaling 133,465 shares worth $101,769,179, reflecting their strategic stock positioning.

Institutional investors have significantly influenced Intuit’s stock ownership, with several large entities adjusting their holdings. Invesco Ltd. increased its stake by 1.2% in the first quarter, now owning 3,078,686 shares valued at $1,890,282,000. Similarly, Charles Schwab Investment Management Inc. grew its holdings by 4.7% to 1,841,590 shares, worth $1,130,718,000. Pinnacle Financial Partners Inc. raised its position by 3.6% to 17,789 shares, valued at $10,922,000. Other firms like Capitolis Liquid Global Markets LLC and Malaga Cove Capital LLC have also acquired notable stakes in the company. Institutional investors and hedge funds collectively hold 83.66% of Intuit’s stock.

In light of these updates, Intuit Inc. continues to demonstrate growth and strategic adjustments, both in its financial performance and its dividend strategy. The company’s ability to surpass earnings estimates, alongside maintained and enhanced ratings from various analysts, underscores its robust position within the software sector, aided by strategic stock management by insiders and institutional investors. Despite some revised target prices from research analysts, Intuit retains strong investor confidence, reflected through its sustained "Moderate Buy" rating, supported by anticipations for consistent future earnings and dividend growth.