Adobe (NASDAQ:ADBE) Shares Gap Down on Analyst Downgrade

Shares of Adobe Inc. (NASDAQ:ADBE) gapped down prior to trading on Thursday after DA Davidson lowered their price target on the stock from $685.00 to $625.00. The stock had previously closed at $549.93, but opened at $487.50. DA Davidson currently has a buy rating on the stock. Adobe shares last traded at $481.94, with a volume of 4,823,986 shares traded.

A number of other equities research analysts also recently commented on ADBE. Argus upgraded shares of Adobe to a “strong-buy” rating in a research report on Monday, September 16th. Stifel Nicolaus reduced their price target on Adobe from $650.00 to $600.00 and set a “buy” rating for the company in a report on Thursday. Piper Sandler dropped their price objective on Adobe from $635.00 to $600.00 and set an “overweight” rating on the stock in a report on Thursday. Bank of America reduced their target price on Adobe from $640.00 to $605.00 and set a “buy” rating for the company in a report on Thursday. Finally, Morgan Stanley restated an “overweight” rating and set a $660.00 target price on shares of Adobe in a research report on Friday, September 13th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Adobe currently has an average rating of “Moderate Buy” and an average price target of $584.88.

Insider Activity

In other Adobe news, Director Amy Banse sold 606 shares of the business’s stock in a transaction on Friday, December 6th. The stock was sold at an average price of $550.00, for a total value of $333,300.00. Following the completion of the transaction, the director now directly owns 32,929 shares in the company, valued at approximately $18,110,950. The trade was a 1.81 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Scott Belsky sold 481 shares of the stock in a transaction on Friday, October 25th. The stock was sold at an average price of $483.42, for a total value of $232,525.02. Following the transaction, the executive vice president now directly owns 18,128 shares in the company, valued at approximately $8,763,437.76. This represents a 2.58 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 34,793 shares of company stock worth $18,069,669 over the last three months. 0.15% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Adobe

Several institutional investors have recently added to or reduced their stakes in the business. Brookstone Capital Management grew its holdings in Adobe by 8.1% in the second quarter. Brookstone Capital Management now owns 8,004 shares of the software company’s stock valued at $4,507,000 after purchasing an additional 599 shares during the period. World Equity Group Inc. grew its stake in shares of Adobe by 9.8% during the 2nd quarter. World Equity Group Inc. now owns 706 shares of the software company’s stock valued at $392,000 after buying an additional 63 shares during the period. Marietta Wealth Management LLC increased its holdings in shares of Adobe by 4.6% during the 2nd quarter. Marietta Wealth Management LLC now owns 12,624 shares of the software company’s stock worth $7,013,000 after buying an additional 557 shares during the last quarter. Signet Investment Advisory Group Inc. raised its position in shares of Adobe by 13.7% in the 2nd quarter. Signet Investment Advisory Group Inc. now owns 4,213 shares of the software company’s stock worth $2,340,000 after buying an additional 507 shares during the period. Finally, Marshall Financial Group LLC boosted its holdings in Adobe by 8.4% in the second quarter. Marshall Financial Group LLC now owns 4,019 shares of the software company’s stock valued at $2,233,000 after acquiring an additional 310 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Adobe Stock Performance

The stock has a market cap of $205.00 billion, a PE ratio of 38.28, a P/E/G ratio of 2.51 and a beta of 1.29. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.11 and a quick ratio of 1.11. The stock has a 50-day simple moving average of $505.99 and a 200-day simple moving average of $523.02.

Adobe (NASDAQ:ADBE) last issued its earnings results on Wednesday, December 11th. The software company reported $4.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.67 by $0.14. Adobe had a return on equity of 45.22% and a net margin of 25.85%. The business had revenue of $5.61 billion during the quarter, compared to analysts’ expectations of $5.54 billion. During the same quarter in the previous year, the business earned $3.52 EPS. The company’s revenue for the quarter was up 11.1% on a year-over-year basis. Equities analysts predict that Adobe Inc. will post 16.73 earnings per share for the current fiscal year.

About Adobe

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.