Intuit founder Scott Cook sells over $50 million in company stock

Intuit Inc. (NASDAQ:INTU ) founder Scott Cook has sold a substantial amount of company stock, totaling over $50 million. The series of transactions occurred on September 17th and 18th, as revealed by recent filings.

Cook, who holds the position of Founder at Intuit, executed several sales of common stock through a trust. The total shares sold amounted to a significant figure, with transactions executed in multiple trades. The prices for these sales ranged between $632.9819 and $648.6336, showcasing a slight fluctuation in the trading price over the two days.

The sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted by Cook on December 26, 2023. Such plans allow company insiders to sell stocks at predetermined times to avoid accusations of insider trading.

Following the sales, Cook still holds a substantial number of shares in Intuit, a testament to his ongoing investment in the company he founded. The shares are held indirectly by trusts, indicating a structured approach to his holdings and estate planning.

Investors often keep a close eye on insider transactions as they can provide insights into the executives' perspectives on the company's future. In this case, the sale represents a divestment by one of Intuit's key figures, although the reasons behind the sale are not specified in the filings.

Intuit, known for its financial and accounting software, including products like TurboTax and QuickBooks, continues to be a major player in the software industry. Despite these sales, the company maintains a strong market presence and continues to innovate within its sector.

Investors and analysts will be watching closely to see how these transactions might influence Intuit's stock performance in the coming weeks and months.



In other recent news, Intuit has been the focus of several significant developments. KeyBanc maintained its Overweight rating and $740.00 price target on Intuit, ahead of the company's investor day where long-term guidance revisions and strategic shifts are expected to be discussed. This optimism is based on Intuit's experience with the Assist platform and changes within the Small Business and Self-Employed (SBSE) and Consumer segments.

Intuit also announced the launch of its new Intuit Enterprise Suite (IES), designed for mid-market businesses. This strategic move is seen as a positive step towards achieving 15-20% growth in its Global Business segment. Piper Sandler and BMO Capital Markets have raised their price targets for Intuit to $768 and $760 respectively, highlighting Intuit's strategic focus on an AI-driven expert platform and the expansion into the mid-market segment as key growth drivers.

Additionally, Intuit unveiled significant updates to its Generative AI Operating System (GenOS), aimed at accelerating the development process for its product teams. The company reported a 13% revenue growth for the fourth quarter and fiscal year 2024, and projects a similar 12% to 13% growth for the fiscal year 2025. However, changes to the desktop ecosystem are projected to result in a $160 million revenue decrease in Q1 fiscal year 2025. Despite a decrease in cash reserves, Intuit's cash and investment reserves remain strong, with $4.1 billion reported at the end of Q4.
InvestingPro Insights


As Intuit Inc. (NASDAQ:INTU) remains in the spotlight following Scott Cook's recent stock sales, insights from InvestingPro offer a deeper understanding of the company's financial health and market position. Intuit has demonstrated a robust financial performance with a gross profit margin of 79.62% over the last twelve months as of Q1 2023. This impressive margin underscores the company's ability to maintain high levels of profitability, a key factor that could reassure investors in light of insider transactions.

InvestingPro Tips highlight Intuit's status as a prominent player in the software industry, which is supported by a strong market capitalization of $183.33 billion. This valuation reflects the company's significant presence and investor confidence in the industry. Moreover, Intuit's commitment to shareholder returns is evident through its consistent dividend payments over the past 14 years, coupled with a recent dividend growth of 33.33%.

However, it is also important to note that Intuit is trading at a high earnings multiple, with a P/E ratio of 62.19, which suggests that the stock may be priced optimistically relative to its near-term earnings potential. This could be a point of consideration for investors evaluating the company's stock following the founder's sales.

For those looking to delve deeper into Intuit's performance and future prospects, more InvestingPro Tips are available, including 20 additional tips that provide a comprehensive analysis of the company's financial metrics and market position.

As Intuit approaches its next earnings date on November 21, 2024, analysts and investors will be keen to assess the company's ongoing strategy and performance. The insights provided by InvestingPro, including a fair value estimation of $605.98, can serve as a valuable resource for those making informed investment decisions.

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

Source: Investing.com