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Intuit founder Scott Cook sells over $101 million in company stock

Published 13-06-2024, 06:24 am
© Reuters

Scott D. Cook, founder and executive officer of Intuit Inc. (NASDAQ:INTU), has sold a significant portion of his stock in the company, totaling over $101 million. The transactions, which took place between June 10 and June 12, 2024, were executed through a series of trades with prices ranging from $563.10 to $602.20.

The sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. This plan had been adopted by Cook on December 26, 2023. According to the filings, the shares sold were held in trusts, with Cook serving as a trustee or beneficiary.

The exact number of shares sold at each price point within the range has not been disclosed, but the reported transactions reflect a weighted average sales price, providing a comprehensive view of the trading activity. This level of detail indicates that Cook's stock sale was carefully structured, likely to minimize market impact and optimize the financial outcome.

Intuit, known for its financial and tax preparation software, including TurboTax and QuickBooks, has seen its stock perform well over the years, which might have provided a favorable environment for Cook's divestiture.

Investors and the market often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's future performance. However, it's essential to note that such sales can be motivated by a variety of personal financial planning reasons and do not necessarily indicate a lack of confidence in the company's prospects.

The shares were indirectly owned by Cook through various family trusts, reinforcing the notion that these transactions are part of broader estate or charitable trust planning. Despite the significant sell-off, Cook remains a substantial shareholder in Intuit, with millions of shares still under his indirect ownership.

Intuit has not released any official statement regarding these transactions, and it remains business as usual for the company as it continues to innovate and provide solutions to its customers around the globe.

In other recent news, Intuit Inc., a financial software company, has been the focus of several Wall Street firms' analyses, with an overall positive outlook. The company's offerings, including TurboTax, QuickBooks, and Credit Karma, have reported robust revenue growth. However, BofA Securities has adjusted its stock price target for Intuit, citing concerns related to the company's consumer tax business. Despite this, the firm maintains a positive outlook, citing Intuit's go-to-market strategies and AI-enabled automation as potential growth drivers.

Simultaneously, Edward Jones has reaffirmed its Buy rating on Intuit, highlighting the company's dominance in the tax-preparation and business-accounting software markets. The firm cited Intuit's high customer retention rates and substantial market share as key factors in its ability to maintain and expand its customer base.

Furthermore, Susquehanna has adjusted its price target for Intuit while maintaining a positive outlook. The firm's decision follows Intuit's strong third fiscal quarter performance, particularly in its Small Business and Consumer segments. However, Susquehanna has also trimmed its expectations for 2025 and 2026 slightly.

Lastly, Piper Sandler has increased its price target for Intuit, citing strong third-quarter revenues and margins. The firm has expressed a bullish stance on Intuit, citing the company's third-quarter performance and the benefits of GenAI, which are not yet fully reflected in Intuit's stock price, as key factors. These recent developments underscore the ongoing attention and analysis Intuit is receiving from various firms.

InvestingPro Insights

As Intuit's founder Scott D. Cook executes a substantial stock sale, current and potential investors might be looking for deeper insights into the company's financial health and market position. According to real-time data from InvestingPro, Intuit Inc. (NASDAQ:INTU) boasts a market capitalization of $165.35 billion and an impressive gross profit margin of 79.49% over the last twelve months as of Q3 2024. These metrics underscore Intuit's strong foothold in the financial and tax preparation software market.

Despite the recent insider selling, Intuit's consistent performance is reflected in its revenue growth, with a 12.39% increase over the last twelve months as of Q3 2024. Additionally, the company has a proven track record of rewarding shareholders, having raised its dividend for 14 consecutive years, a testament to its stable financial management and commitment to returning value to its investors.

InvestingPro Tips also highlight Intuit's prominent position as a player in the Software industry, with a high return over the last decade. However, it's worth noting that the company is trading at a high earnings multiple, with a P/E ratio of 53.97, which may indicate a premium valuation relative to near-term earnings growth. For investors looking for more comprehensive analysis, there are over 15 additional InvestingPro Tips available at https://www.investing.com/pro/INTU, which could provide further guidance on the company's prospects.

For those interested in a deeper dive into Intuit's financials and market potential, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where even more insights and tips await.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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