Adobe (NASDAQ:ADBE) Cut to "Sell" at Melius

Key Points

• Adobe has been downgraded from a "hold" to a "sell" rating by Melius, with a new price target of $310.00, indicating a potential downside of 8.60% from its current price.
• Despite the downgrade, Adobe has received mixed feedback from other analysts, with some raising their price targets, leading to a consensus rating of "Moderate Buy" and an average price target of $467.58.
• Adobe's stock is currently priced at $339.18 and has reported strong earnings, with a revenue of $5.87 billion and earnings per share of $5.06 for the last quarter.

Adobe (NASDAQ:ADBE - Get Free Report) was downgraded by equities researchers at Melius from a "hold" rating to a "sell" rating in a research note issued on Monday, Marketbeat Ratings reports. They currently have a $310.00 price target on the software company's stock. Melius' price objective would indicate a potential downside of 8.60% from the company's current price.

A number of other analysts also recently weighed in on ADBE. UBS Group upped their target price on shares of Adobe from $380.00 to $430.00 and gave the stock a "neutral" rating in a research report on Monday, June 9th. Robert W. Baird increased their price objective on shares of Adobe from $410.00 to $425.00 and gave the company a "neutral" rating in a research report on Monday, June 16th. Morgan Stanley cut their price objective on shares of Adobe from $600.00 to $510.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 16th. JMP Securities reissued a "market perform" rating on shares of Adobe in a research report on Monday, June 23rd. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $470.00 price objective (up from $430.00) on shares of Adobe in a research report on Friday, June 13th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $467.58.

Adobe Stock Down 0.5%

NASDAQ:ADBE opened at $339.18 on Monday. The firm's 50-day moving average price is $378.55 and its 200-day moving average price is $395.47. The company has a market capitalization of $143.88 billion, a PE ratio of 21.43, a P/E/G ratio of 1.62 and a beta of 1.51. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.99 and a quick ratio of 0.99. Adobe has a 1-year low of $332.01 and a 1-year high of $587.75.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, June 12th. The software company reported $5.06 earnings per share for the quarter, topping analysts' consensus estimates of $4.97 by $0.09. The firm had revenue of $5.87 billion for the quarter, compared to the consensus estimate of $5.80 billion. Adobe had a net margin of 30.39% and a return on equity of 53.68%. The company's revenue was up 10.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.48 EPS. On average, equities analysts predict that Adobe will post 16.65 EPS for the current fiscal year.

Institutional Investors Weigh In On Adobe

Institutional investors have recently added to or reduced their stakes in the stock. Garde Capital Inc. purchased a new stake in Adobe during the 1st quarter valued at approximately $34,000. PFG Advisors grew its holdings in Adobe by 20.8% during the 1st quarter. PFG Advisors now owns 4,964 shares of the software company's stock valued at $1,904,000 after buying an additional 855 shares in the last quarter. Krane Funds Advisors LLC grew its holdings in Adobe by 110.4% during the 1st quarter. Krane Funds Advisors LLC now owns 1,391 shares of the software company's stock valued at $533,000 after buying an additional 730 shares in the last quarter. Burling Wealth Partners LLC purchased a new stake in Adobe during the 4th quarter valued at approximately $1,173,000. Finally, Financial Counselors Inc. boosted its position in shares of Adobe by 9.2% during the 1st quarter. Financial Counselors Inc. now owns 62,851 shares of the software company's stock valued at $24,105,000 after acquiring an additional 5,298 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

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.

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