Adobe (NASDAQ:ADBE) Downgraded by Wall Street Zen to "Hold"

Key Points

• Adobe's stock rating was downgraded from "buy" to "hold" by Wall Street Zen, indicating a more cautious outlook for the company amid recent analyst considerations.
• A variety of analysts provided differing ratings for Adobe, with targets ranging from $280.00 to $500.00, reflecting a divided sentiment in the market.
• Adobe's quarterly earnings report showed a 10.6% year-over-year revenue increase and earnings per share of $5.06, surpassing expectations, which may influence future stock performance despite the downgrade.

Adobe (NASDAQ:ADBE - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Friday.

Several other analysts have also commented on ADBE. Rothschild & Co Redburn lowered Adobe from a "neutral" rating to a "sell" rating and set a $280.00 price objective for the company. in a report on Wednesday, July 2nd. Wells Fargo & Company reissued an "overweight" rating and issued a $470.00 price target (up previously from $430.00) on shares of Adobe in a report on Friday, June 13th. Redburn Atlantic lowered Adobe from a "hold" rating to a "strong sell" rating and dropped their price target for the stock from $420.00 to $280.00 in a research note on Wednesday, July 2nd. Citigroup decreased their price objective on shares of Adobe from $465.00 to $450.00 and set a "neutral" rating for the company in a research report on Monday, June 16th. Finally, DA Davidson reiterated a "buy" rating and issued a $500.00 target price on shares of Adobe in a research note on Friday, June 20th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Adobe presently has a consensus rating of "Moderate Buy" and a consensus target price of $467.58.

Adobe Trading Up 2.5%

ADBE stock traded up $8.66 during mid-day trading on Friday, reaching $362.09. The company had a trading volume of 3,055,589 shares, compared to its average volume of 3,743,152. The company has a market capitalization of $153.60 billion, a PE ratio of 23.17, a price-to-earnings-growth ratio of 1.68 and a beta of 1.51. The firm has a 50 day moving average of $366.57 and a 200 day moving average of $389.97. Adobe has a 12 month low of $330.04 and a 12 month high of $587.75. 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 (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, June 12th. The software company reported $5.06 earnings per share for the quarter, beating the consensus estimate of $4.97 by $0.09. The firm had revenue of $5.87 billion during the quarter, compared to the consensus estimate of $5.80 billion. Adobe had a return on equity of 53.68% and a net margin of 30.39%.The firm's quarterly revenue was up 10.6% on a year-over-year basis. During the same period in the previous year, the company posted $4.48 earnings per share. Adobe has set its Q3 2025 guidance at 5.150-5.200 EPS. FY 2025 guidance at 20.500-20.700 EPS. On average, equities analysts predict that Adobe will post 16.65 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Adobe

A number of hedge funds have recently bought and sold shares of the business. Brighton Jones LLC increased its stake in shares of Adobe by 2.1% in the 4th quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock worth $3,588,000 after acquiring an additional 167 shares during the last quarter. Bank Pictet & Cie Europe AG lifted its position in shares of Adobe by 2.7% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 28,969 shares of the software company's stock valued at $12,882,000 after acquiring an additional 756 shares during the period. Dark Forest Capital Management LP boosted its stake in shares of Adobe by 10.8% during the 4th quarter. Dark Forest Capital Management LP now owns 1,408 shares of the software company's stock worth $626,000 after acquiring an additional 137 shares in the last quarter. Integrated Wealth Concepts LLC grew its holdings in shares of Adobe by 8.6% in the 4th quarter. Integrated Wealth Concepts LLC now owns 13,244 shares of the software company's stock worth $5,889,000 after acquiring an additional 1,046 shares during the period. Finally, Stonebridge Capital Advisors LLC increased its stake in Adobe by 26.7% in the 4th quarter. Stonebridge Capital Advisors LLC now owns 621 shares of the software company's stock valued at $276,000 after purchasing an additional 131 shares in the last quarter. Hedge funds and other institutional investors 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.

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