4. Intuit Inc. (NASDAQ:INTU)
Fundsmith LLP’s Stake Value: $2,472,326,000
Percentage of Fundsmith LLP’s 13F Portfolio: 6.83%
Number of Hedge Fund Holders: 64
Intuit Inc. (NASDAQ:INTU) is one of the top stock picks of Terry Smith’s Fundsmith LLP, with the hedge fund owning 4.58 million shares of Intuit Inc. (NASDAQ:INTU) in the third quarter, worth $2.47 billion, representing 6.83% of the total Q3 investments. Intuit Inc. (NASDAQ:INTU) is an American financial software company, headquartered in California.
Publishing its Q3 results on November 18, Intuit Inc. (NASDAQ:INTU) reported earnings per share of $1.53, exceeding estimates by $0.56. The $2.01 billion revenue was up 51.70% year-over-year, surpassing estimates by $193.42 million. The company raised its revenue guidance for 2021 by more than $1 billion, crediting the $12 billion acquisition of MailChimp on November 1. Credit Karma was acquired by Intuit Inc. (NASDAQ:INTU) in 2020, which also added $418 million to the quarterly revenue.
On November 19, Evercore ISI analyst Kirk Materne raised the price target on Intuit Inc. (NASDAQ:INTU) to $720 from $650 and kept an Outperform rating on the shares, citing the company’s Q3 financial results. The analyst stated that investors should feel confident about Intuit Inc. (NASDAQ:INTU)’s anticipated mid-to-high teens percentage revenue growth over the next several years.
Dan Loeb’s hedge fund, Third Point, is one of the largest Intuit Inc. (NASDAQ:INTU) stakeholders at the end of September 2021, with 1.10 million shares worth $593.4 million. Overall, 64 hedge funds tracked by Insider Monkey’s Q3 database were bullish on the stock.
Here is what Cooper Investors has to say about Intuit Inc. (NASDAQ:INTU) in its Q3 2021 investor letter:
“The other meaningful deal during the quarter was Intuit’s acquisition of Mailchimp for $12bn. Intuit has reinvented itself over the last decade and thrived with a leadership position in QuickBooks Online, the financial accounting software for small businesses (effectively the ‘Xero of the US’). We originally invested in Intuit in February 2020, excited by the QuickBooks prospects.
Management has executed exceptionally well on the opportunity set which has seen the shares double since our initial purchase. However, the company has now conducted two meaningful deals in Mailchimp and Credit Karma worth a combined US$20bn over the last 12 months. The investment proposition has shifted from a focus on QuickBooks to now being a financial and small business software conglomerate. We continue to very much admire the company, but with Intuit now trading on 50x forward earnings we no longer see such attractive latency on offer, nor the rewards for the level of execution risk and thus we have exited the position.”
