Scott Cook, the founder and a director at Intuit Inc. (NASDAQ:INTU), recently sold a significant portion of his holdings in the company, according to a filing with the Securities and Exchange Commission. On December 18, Cook sold shares amounting to a total value of approximately $48.98 million. The transactions were executed in a price range between $648.26 and $674.875 per share. With a current market capitalization of $180.7 billion and trading near its 52-week high, InvestingPro analysis indicates the stock is currently trading above its Fair Value.
These sales were carried out through a pre-established trading plan, known as a Rule 10b5-1 plan, which allows insiders to set up a predetermined schedule for selling shares. The shares were held in trusts, including the Scott D. Cook and Helen Signe Ostby Family Trust and others, where Cook is a trustee or beneficiary. InvestingPro subscribers can access 15+ additional insights about Intuit's valuation and financial health, which currently shows a GOOD overall score.
Following these transactions, Cook still retains ownership of over 6.3 million shares of Intuit through various trusts. The transactions reflect Cook's ongoing management of his substantial holdings in the software company, which is renowned for products like TurboTax and QuickBooks. The company maintains impressive gross profit margins of nearly 80% and has demonstrated strong revenue growth of 12.5% over the last twelve months.
In other recent news, Intuit has been making headlines with its strong first-quarter results and strategic transformations. The financial software company reported first-quarter revenues of $3.28 billion, surpassing expectations by approximately $144 million. Additionally, earnings per share (EPS) came in at $2.50, a $0.14 increase over projections. Significant contributors to this performance were a 20% increase in Global Business Services (GBS) Online Ecosystem and a 29% rise in Credit Karma.
Analysts from Mizuho (NYSE:MFG) and Piper Sandler have been actively tracking these developments. Mizuho reiterated its Outperform rating on Intuit and increased the price target to $750, up from the previous $725. In contrast, Piper Sandler slightly adjusted the price target for Intuit to $765 from the previous $768, while maintaining an Overweight rating. Both firms attribute Intuit's success to strategic shifts and the company's focus on AI and serving mid-market and small business customers.
Despite strong results, Intuit's second-quarter guidance was slightly below market expectations, which Mizuho attributes to a strategic shift in revenue from the second to the third quarter. The company's recent developments also include a transformational focus on simplifying financial tasks to attract new users. However, a decline in desktop revenue was noted during this period. Despite potential challenges to its TurboTax product from new tax filing initiatives, analysts maintain a positive outlook for Intuit.
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