3 Funds To Watch For Intuit Exposure
Business and accounting software maker Intuit Inc. (NASDAQ: INTU) closed at $92.56 on Monday, following a better than expected first-quarter earnings report last Friday.
CEO Brad Smith said the move to more cloud-based services is accelerating customer growth. Online subscriptions for one of its flagship product, Quickbooks, grew 43 percent from the year-ago quarter to 739,000. Other popular products are TurboTax and Quicken.
Year to date, Intuit shares have advanced 21 percent. The stock's dividend yield is 1.1 percent.
The number of U.S.-based mutual funds and hedge funds owning shares of Intuit has climbed in the past three quarters.
Over the long haul, institutional owners -- such as mutual funds -- account for the majority of a stock's movement, either up or down.
American Funds The Growth Fund Of America
A top institutional owner is American Funds The Growth Fund of America Class A (MUTF: AGTHX), which owns 3.61 percent of Intuit shares, although that only accounts for 0.63 percent of fund holdings.
This is one of the largest funds in the growth category, with more than $141 billion in assets invested. American Funds are widely used in 401(k) programs, which accounts for the size. This fund primarily invests in large-cap growth companies, with consumer cyclical, technology and healthcare being the top three sectors represented. The primary focus is U.S. equities, although non-U.S. stocks constitute about 10 percent of the portfolio. The fund's year-to-date return is 7 percent.
Vanguard PRIMECAP Fund
Another top fund owner of Intuit is the Vanguard PRIMECAP Fund Investor Shares (MUTF: VPMCX), also in the large-cap growth category. It holds 2.61 percent of Intuit shares, totaling 1.39 percent of fund assets. The fund invests in stocks with better-than-average earnings growth potential not yet shown in their market value.
Year to date, the fund has returned 18 percent.
Ivy Asset Strategy Fund
The Ivy Asset Strategy Fund Class A (MUTF: WASAX) holds 1.55 percent of Intuit shares, accounting for 1.40 percent of fund assets. Managers of this fund have the freedom to invest in various asset classes. Stocks constitute the bulk of holdings, and the fund currently has a large position in cash.
Year to date, the fund has a gain of 4 percent.
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