Adobe (NASDAQ:ADBE) Shares Down 1.2% – What’s Next?

Adobe Inc. (NASDAQ:ADBE) saw a decline of 1.2% during trading on Friday. The stock traded as low as $442.65 before last trading at $444.60. During the mid-day session, 800,548 shares exchanged hands, marking a significant drop of 76% from the average trading volume of 3,286,995 shares. The stock had closed at $450.16 the previous day.

Analyst Upgrades and Downgrades

Recently, several brokerages provided updates regarding Adobe's stock. Barclays lowered their price target from $675.00 to $645.00, maintaining an “overweight” rating for the company. Similarly, BMO Capital Markets reduced their outlook from $600.00 to $570.00, while also assigning an “outperform” rating. Piper Sandler decreased their price goal from $635.00 to $600.00 and held an “overweight” rating. Additionally, Bank of America cut their target from $640.00 to $605.00, maintaining a “buy” rating. Oppenheimer similarly adjusted their target from $625.00 to $600.00 and kept an “outperform” rating. In total, two analysts have rated Adobe's stock as a sell, eight as hold, seventeen as buy, and two as strong buy, leading to a consensus rating of "Moderate Buy" and an average price target of $584.88 according to MarketBeat.com.

Adobe Price Performance

The company currently holds a quick ratio and a current ratio of 1.11, alongside a debt-to-equity ratio of 0.28. Adobe has a market capitalization of $196.54 billion, a PE ratio of 36.01, a price-to-earnings-growth ratio of 2.51, and a beta of 1.29. The stock's 50-day moving average stands at $495.02, with a 200-day moving average at $522.73.

Adobe's recent earnings report, released on December 11th, showed that the company achieved earnings per share of $4.81 for the quarter, exceeding the consensus estimate of $4.67 by $0.14. The company's revenue amounted to $5.61 billion, also surpassing the consensus estimate of $5.54 billion. Adobe reported a net margin of 25.85% and a return on equity of 45.22%. Compared to the same quarter last year, Adobe's revenue grew by 11.1%. Last year during the same period, the company posted earnings of $3.52 EPS. Analysts are projecting that Adobe Inc. will report 16.73 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related insider trading news, Scott Belsky, an executive vice president, sold 1,530 shares on October 15th at an average price of $513.82, totaling approximately $786,144.60. After this transaction, Belsky held 18,831 shares, valued at about $9,675,744.42, representing a 7.51% decrease in ownership. The details of this transaction were filed with the SEC. Additionally, Director Amy Banse sold 606 shares on December 6th at an average price of $550.00, resulting in a total of $333,300.00. Following this sale, Banse owns 32,929 shares valued around $18,110,950, reflecting a 1.81% decrease in their ownership. In the last 90 days, insiders have sold a total of 3,293 shares worth approximately $1,679,809. Insiders hold about 0.15% of the stock overall.

Institutional Trading of Adobe

Hedge funds and institutional investors have shown interest in Adobe shares. For instance, Commonwealth Financial Services LLC enhanced its position by 3.7% during the second quarter, holding 537 shares worth $309,000. Onyx Bridge Wealth Group LLC increased its holdings by 4.0% in the third quarter, now owning 526 shares valued at $272,000. Connable Office Inc. and 1ST Source Bank have also raised their stakes slightly. Currently, institutional investors and hedge funds collectively own about 81.79% of Adobe's stock.

Adobe Company Profile

Adobe Inc. operates as a diversified software company globally, functioning through three main segments: Digital Media, Digital Experience, and Publishing and Advertising. Their Digital Media segment focuses on products and services that facilitate the creation, publication, and promotion of content, in addition to offering Document Cloud, a comprehensive document service platform.

Adobe, Stocks, Analysts