Royal Bank of Canada Reaffirms "Outperform" Rating for Adobe (NASDAQ: ADBE) with $530.00 Price Target

On Wednesday, investment analysts at the Royal Bank of Canada reiterated an "outperform" rating for Adobe's stock (NASDAQ: ADBE) in a recent research note issued to clients. They set a price target of $530.00, which suggests a potential upside of 35.24% from Adobe's previous closing price.

In addition to the Royal Bank of Canada, several other financial institutions have provided their own evaluations of Adobe's stock. For instance, on March 10, Citigroup reduced its price target for Adobe from $551.00 to $490.00 while assigning a "neutral" rating. Also, on March 13, JPMorgan Chase lowered its price target from $580.00 to $540.00 while maintaining an "overweight" rating. Stifel Nicolaus also made adjustments on the same day, reducing its target from $600.00 to $525.00 and reaffirming a "buy" rating. JMP Securities, on December 12, rated the stock as a "market perform," whereas Piper Sandler adjusted its price target down from $635.00 to $600.00 while keeping an "overweight" rating.

Currently, consensus among analysts shows one sell rating, ten hold ratings, seventeen buy ratings, and one strong buy rating for Adobe. According to MarketBeat, the average rating is classified as "Moderate Buy," with a consensus price target of $538.80.

Recent Stock Performance of Adobe

On the Wednesday following the report from Royal Bank of Canada, Adobe's stock traded up $0.54, reaching a price of $391.91. Trading volume was reported at 730,435 shares compared to an average volume of 3,198,167 shares. Over the last twelve months, Adobe's stock has seen a low of $374.50 and a high of $587.75. Currently, the stock carries a market capitalization of $170.64 billion, with a price-to-earnings ratio of 31.63 and a beta of 1.37.

Adobe recently reported its quarterly earnings, announcing $5.08 earnings per share (EPS) for the last quarter, surpassing the consensus estimate of $4.97 by $0.11. The total revenue for the quarter was recorded at $5.71 billion, which also exceeded expectations, as analysts had predicted $5.66 billion. Last year, during the same quarter, Adobe had posted an EPS of $4.48. Analysts project the company will achieve an EPS of 16.65 for the current fiscal year.

Recent Insider Trading Activity

In other news, Adobe’s Director David A. Ricks purchased 2,250 shares of stock on January 28 at an average price of $443.98 per share, totaling approximately $998,955. Post-transaction, he holds 4,984 shares valued at over $2.2 million, representing an increase of 82.30% in ownership. On the same day, Chief Accounting Officer Jillian Forusz sold 334 shares at an average of $435.83 for nearly $145,567, reducing her ownership by 11.06%.

Institutional Investors Involvement

Recent trends show that several institutional investors have been adjusting their stakes in Adobe. For example, State Street Corp increased its holdings by 1.2%, now owning over 20 million shares worth approximately $10.5 billion. Geode Capital Management also raised its stake by 1.4%, owning about 10.68 million shares valued at nearly $4.74 billion. A notable increase was seen from FMR LLC, which lifted its position by 8.8%, owning nearly 9.7 million shares valued at over $5 billion. Currently, institutional investors and hedge funds hold approximately 81.79% of Adobe's stock.

About Adobe

Adobe Inc. is a leading software company with operations across the globe. It functions through multiple segments including Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment specifically provides a range of products, services, and solutions that assist individuals and businesses to create, publish, and distribute content effectively.

Adobe, Bank, Stocks