On Monday, Oppenheimer maintained its positive stance on Intuit (NASDAQ:INTU) shares, keeping an Outperform rating and a $712.00 price target. The latest tax filing data released by the IRS shows an increase in year-over-year filings, signaling a robust tax season for 2024. As of the last weekly update before the April 15 tax deadline, all filing categories have seen low-single-digit growth compared to the previous year.
The IRS data, which covers the period up to Wednesday, April 12, 2024, reveals that individual income tax returns received totaled 119.592 million, marking a 1.9% increase from the same period last year. Furthermore, individual e-filing receipts, a significant portion of filings, reached 115.734 million, up 2.2% year-over-year. This growth is particularly notable in the context of e-filings, which consist of submissions from tax professionals and self-prepared filings.
Receipts from tax professionals accounted for 63.318 million e-filings, experiencing a 1.8% year-over-year growth—the first instance of such growth this season. Self-prepared e-filings, on the other hand, continued their upward trend for the sixth consecutive week, totaling 52.416 million and showing a 2.7% increase compared to the previous year.
The eleventh reporting period of the year highlighted a moderate shift towards self-prepared e-filings compared to those prepared by professionals. This trend aligns with the patterns observed before the pandemic, although the change is not as marked as seen in the pre-pandemic years. These statistics indicate a return to normalcy and a healthy tax filing season, which may bode well for companies like Intuit that provide tax-related software and services.
InvestingPro Insights
With Oppenheimer maintaining a positive outlook on Intuit, it's worth noting that the company has been a consistent performer in the financial software sector. According to InvestingPro data, Intuit has a robust market capitalization of $169.29 billion and impressive gross profit margins at 79.1% for the last twelve months as of Q2 2024. This financial stability is further underscored by a revenue growth of 10.3% during the same period, indicating Intuit's ability to expand its financial base in a competitive market.
InvestingPro Tips highlight Intuit's history of raising its dividend for 13 consecutive years and maintaining dividend payments for 14 consecutive years, which could be appealing to investors seeking companies with a track record of returning value to shareholders. Despite trading at a high earnings multiple with a P/E ratio of 60.97, the company's low price volatility and position as a prominent player in the Software industry reflect its strong market presence.
For readers interested in a deeper dive into Intuit's financial health and prospects, there are additional InvestingPro Tips available. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to comprehensive analysis and metrics that could inform investment decisions. With 20 more tips listed on InvestingPro, there's a wealth of information to explore for those looking to understand Intuit's financial landscape further.
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