In a new SEC filing on June 5, it was revealed that Tessel, EVP at Intuit INTU, executed a significant exercise of company stock options.
What Happened: Disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Tessel, EVP at Intuit, executed a strategic derivative sale. This involved exercising stock options for 34,329 shares of INTU, resulting in a transaction value of $16,678,744.
As of Friday morning, Intuit shares are up by 0.11%, with a current price of $767.45. This implies that Tessel’s 34,329 shares have a value of $16,678,744.
Delving into Intuit’s Background
Intuit serves small and midsize businesses with accounting software QuickBooks and online marketing platform Mailchimp. The company also operates retail tax filing tool TurboTax, personal finance platform Credit Karma, and a suite of professional tax offerings for accountants. Founded in the mid-1980s, Intuit enjoys a dominant market share for small business accounting and do-it-yourself tax filing in the US.
Financial Insights: Intuit
Revenue Growth: Intuit’s revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2025, the company achieved a revenue growth rate of approximately 15.1%. This indicates a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Profitability Metrics:
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Gross Margin: Achieving a high gross margin of 84.6%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Intuit’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 10.09.
Debt Management: Intuit’s debt-to-equity ratio is below the industry average. With a ratio of 0.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: Intuit’s P/E ratio of 62.58 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a P/S ratio of 11.94 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 39.88, Intuit presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.
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Unmasking the Significance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Closer Look at Important Transaction Codes
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Intuit’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
