Intuit shares drop more than 2% after Bank of America investment and new buyback plans fail to stem pressure

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Intuit slips 2.18% today

Highlights

Bank of America acquired more than 2.25 million shares of Intuit during the second quarter.
Intuit approved $7.9 billion for new share buybacks and raised the quarterly dividend by 15% to $1.38 per share.
Shares of Intuit trade below key moving averages with a forecast range of $307.38 to $336.9 and 75% probability of a downward move.

Institutional inflows and buyback expansion fail to offset persistent selling

Bank of America Corp DE acquired over 2.25 million shares of Intuit during the second quarter. Intuit's board authorized $7.9 billion for future stock repurchases in July and completed $5.5 billion in buybacks for fiscal 2026. Management also raised the quarterly dividend by 15% to $1.38 per share and issued fiscal 2027 guidance for 9–10% revenue growth and faster earnings gains, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees a persistently negative technical setup for Intuit. He notes the price languishing below all major moving averages and highlights that recent institutional inflows and a buyback plan have so far failed to reverse sentiment. Oscillator readings point to mild selling yet little conviction from buyers. Downside probabilities remain dominant in the near term. "With resistance at $322.17 and the downside gap unresolved, I remain defensive until sellers lose control and a firmer bottom is established," he says.

Viktoras Karapetjanc, expert at Traders Union, views the situation as an opportunity building beneath the surface. He highlights large-scale buybacks, a 15% dividend hike, and robust forward guidance as factors that support a bullish framework. Elevated institutional interest, led by Bank of America, signals confidence in Intuit's long-term outlook. He believes the correction is temporary and sets the stage for further growth. "As fundamentals strengthen and the market digests recent moves, the bullish structure remains intact and I expect renewed upside momentum soon," Karapetjanc says.

Jainam Mehta, market strategist, notes the confluence of technical pressure and mixed momentum signals for Intuit. He points out that the sideways forecast offers a potential range-trading setup for tactical investors. A break above $322.17 could shift short-term bias to the upside, while a move below $320.94 exposes the next leg lower. "Divergence among key indicators hints at opportunities for agile traders around these levels," says Mehta.

Bearish bias as price stays below resistance and momentum signals diverge

Intuit is trading below its 20-day ($343.97), 50-day ($322.17), and 200-day ($417.40) moving averages, signaling sustained pressure from sellers across short-, medium-, and long-term timeframes. Near-term resistance is now set at $322.17 and support is established at $320.94, with the Ichimoku Kijun ($341.62) confirming a bearish backdrop. Momentum readings are mixed: the MACD (-3.11) and Average Directional Index (13.51) both indicate a neutral stance. The Relative Strength Index (48.02) and Commodity Channel Index (-56.51) both signal mild selling pressure, though the Stochastic RSI (43.23) is neutral. Bull/Bear Power (5.6) shows that buyers are dominating intraday momentum, although its "Overbought" label suggests limited upside in the very short term. The stock is down $7.17, slipping 2.18% for the session, following a downside gap of about $6.78 (2.06%). Price is currently in the mid-range of today's session, with intraday volatility at 0.80%. Overall, the market shows subdued activity after the opening weakness, and there is a notable divergence between momentum and oscillator signals.

Previously it was reported that Intuit’s solid financial results and increased shareholder returns were countered by ongoing technical resistance and mixed trading signals. The latest analysis strengthens this view, emphasizing that until the stock can reclaim key moving averages or decisive momentum emerges, the primary risk remains further downside below $320.94 in the near term.

Source of Data: INTU Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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