Adobe (NASDAQ:ADBE) Shares Down 2.8% – Here’s Why

Adobe Inc. (NASDAQ:ADBE) was down 2.8% during mid-day trading on Friday . The company traded as low as $407.44 and last traded at $407.71. Approximately 1,796,248 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 3,561,906 shares. The stock had previously closed at $419.58.

Analysts Set New Price Targets

ADBE has been the topic of several research reports. Piper Sandler reduced their price objective on Adobe from $635.00 to $600.00 and set an “overweight” rating on the stock in a report on Thursday, December 12th. Jefferies Financial Group cut their price target on Adobe from $700.00 to $650.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. Mizuho lowered their price objective on shares of Adobe from $640.00 to $620.00 and set an “outperform” rating for the company in a research note on Thursday, December 12th. Stifel Nicolaus cut their target price on shares of Adobe from $650.00 to $600.00 and set a “buy” rating on the stock in a research report on Thursday, December 12th. Finally, Oppenheimer lowered their price target on shares of Adobe from $625.00 to $600.00 and set an “outperform” rating for the company in a research report on Thursday, December 12th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $575.85.

Adobe Price Performance

The stock has a 50 day moving average of $484.01 and a 200-day moving average of $517.08. The company has a market cap of $178.69 billion, a PE ratio of 32.74, a price-to-earnings-growth ratio of 2.51 and a beta of 1.31. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.11 and a current ratio of 1.11.

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

Insider Activity

In other Adobe news, Director Amy Banse sold 606 shares of the company’s stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $550.00, for a total value of $333,300.00. Following the transaction, the director now owns 32,929 shares of the company’s stock, valued at $18,110,950. This represents a 1.81 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Scott Belsky sold 1,530 shares of Adobe stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $513.82, for a total transaction of $786,144.60. Following the sale, the executive vice president now owns 18,831 shares of the company’s stock, valued at approximately $9,675,744.42. This represents a 7.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 3,293 shares of company stock valued at $1,679,809. 0.15% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ADBE. Quest Partners LLC grew its holdings in shares of Adobe by 23.3% during the second quarter. Quest Partners LLC now owns 588 shares of the software company’s stock worth $327,000 after purchasing an additional 111 shares during the last quarter. Valley Wealth Managers Inc. boosted its position in Adobe by 35.2% during the second quarter. Valley Wealth Managers Inc. now owns 1,336 shares of the software company’s stock worth $742,000 after acquiring an additional 348 shares during the last quarter. CoreCap Advisors LLC acquired a new stake in shares of Adobe in the second quarter worth approximately $380,000. 1ST Source Bank raised its holdings in shares of Adobe by 29.4% in the 2nd quarter. 1ST Source Bank now owns 2,869 shares of the software company’s stock worth $1,594,000 after purchasing an additional 651 shares during the period. Finally, Fiduciary Group LLC raised its position in Adobe by 37.5% in the second quarter. Fiduciary Group LLC now owns 3,510 shares of the software company’s stock valued at $1,950,000 after purchasing an additional 958 shares during the period. Institutional investors and hedge funds own 81.79% of the company’s stock.

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.