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Intuit Stock Nabs Analyst Bull Note Before Earnings

Intuit said its fiscal 2021 sales will likely top its original February projections

Digital Content Manager
May 12, 2021 at 9:25 AM
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Intuit Inc. (NASDAQ:INTU) is gearing up for its fiscal third-quarter earnings release, expected out later this month after the market closes on Tuesday, May 25. The company said on Tuesday that it will most likely top the fiscal 2021 sales and earnings forecast it set in February, though revenue could lag because of this year's tax filing extension to  May 17. RBC lifted its price target to $490 from $480 in response. 

Intuit stock is flat despite the announcement, last seen just a hair's breadth above last night's close at $395. The past year has been a choppy one for INTU, with the $420 mark acting as a ceiling on two separate occasions since February, keeping the stock from reclaiming its Feb 16. all-time high of $423.74. Nevertheless, the security still sports a 37.2% year-to-date lead, with the 120-day moving average containing most of INTU's pullbacks since April 2020. 

Analysts are overwhelmingly bullish on the equity. Coming into today, 12 considered the stock a "strong buy," compared to just three "hold" ratings. Plus, the 12-month consensus price target of $451.61 is a 14.3% premium to current levels. 

Options traders have taken a much different stance. In fact, over six puts have been picked up for every call during the past two  weeks at the  International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all but 2% of readings from the past 12 months, suggesting a much healthier-than-usual appetite for long puts of late. 

Short sellers have been targeting INTU in droves, too. Short interest surged 26.5% in the most recent reporting period. The 2.91 million shares sold short still make up a slim 1.1% of the stock's available float, though, and it would take a little over two days to buy back these bearish bets at INTU's average daily pace of  trading. 

 

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