On September 5, 2023, Mark Notarainni, the Executive Vice President of the Consumer Group at Intuit Inc (INTU, Financial), sold 7,274 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 22,972 shares and purchased none.
Intuit Inc is a leading provider of business and financial management solutions for small businesses, consumers, and accounting professionals. The company's flagship products and services, including QuickBooks, TurboTax, and Mint, simplify small business management and payroll processing, personal finance, and tax preparation and filing.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 27 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Intuit Inc were trading for $548.3 each, giving the company a market cap of $154.16 billion. This price represents a price-earnings ratio of 65.17, significantly higher than the industry median of 27.86 and the company's historical median price-earnings ratio.
Despite this high price-earnings ratio, the stock appears to be fairly valued based on its GuruFocus Value of $585.10, resulting in a price-to-GF-Value ratio of 0.94. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The calculation of the GF Value is illustrated in the following image:
The insider's recent sell-off, combined with the lack of insider buys over the past year, could be seen as a bearish signal for the stock. However, the stock's fair valuation based on its GF Value suggests that it may still offer potential for investors. As always, investors should conduct their own research and consider their individual risk tolerance before making investment decisions.
