Adobe (NASDAQ:ADBE) Earns Hold (C-) Rating from Weiss Ratings

Key Points

• Adobe's stock has been given a "hold (C-)" rating by Weiss Ratings, with various brokerages adjusting their target prices, indicating a mixed outlook on the company's performance.
• The company recently reported earnings of $5.31 per share, exceeding expectations, and is anticipating revenue growth with an FY 2025 guidance of 20.800-20.850 EPS.
• A significant majority of Adobe's shares, approximately 81.79%, are held by institutional investors and hedge funds, reflecting strong institutional interest in the stock.

Adobe (NASDAQ:ADBE - Get Free Report)'s stock had its "hold (c-)" rating reiterated by analysts at Weiss Ratings in a research report issued on Friday,Weiss Ratings reports.

Several other brokerages have also recently commented on ADBE. Royal Bank Of Canada dropped their target price on shares of Adobe from $480.00 to $430.00 and set an "outperform" rating for the company in a research report on Monday, September 8th. Redburn Partners set a $280.00 target price on shares of Adobe in a research report on Monday, September 1st. Mizuho cut shares of Adobe from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 24th. Wall Street Zen lowered shares of Adobe from a "buy" rating to a "hold" rating in a report on Saturday, October 18th. Finally, Evercore ISI lowered their price objective on shares of Adobe from $475.00 to $450.00 and set an "outperform" rating for the company in a research report on Friday, September 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Adobe currently has an average rating of "Hold" and an average price target of $433.41.

Adobe Trading Down 0.1%

ADBE stock traded down $0.23 during trading on Friday, hitting $353.89. The company had a trading volume of 803,098 shares, compared to its average volume of 3,945,214. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.53. The firm has a 50-day moving average price of $351.74 and a 200-day moving average price of $368.63. Adobe has a 12 month low of $327.50 and a 12 month high of $557.90. The stock has a market cap of $148.14 billion, a price-to-earnings ratio of 22.04, a PEG ratio of 1.59 and a beta of 1.49.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, September 11th. The software company reported $5.31 earnings per share for the quarter, topping the consensus estimate of $5.18 by $0.13. The firm had revenue of $5.99 billion during the quarter, compared to analysts' expectations of $5.91 billion. Adobe had a net margin of 30.01% and a return on equity of 57.54%. Adobe's revenue was up 10.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $4.65 EPS. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. As a group, analysts predict that Adobe will post 16.65 earnings per share for the current year.

Hedge Funds Weigh In On Adobe

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Phillips Financial Management LLC acquired a new position in Adobe in the 3rd quarter worth $228,000. Legacy Trust boosted its stake in Adobe by 19.5% in the 3rd quarter. Legacy Trust now owns 5,045 shares of the software company's stock worth $1,780,000 after purchasing an additional 825 shares during the period. World Equity Group Inc. acquired a new position in Adobe in the 3rd quarter worth $357,000. Heck Capital Advisors LLC acquired a new position in Adobe in the 3rd quarter worth $394,000. Finally, Narwhal Capital Management boosted its stake in Adobe by 78.4% in the 3rd quarter. Narwhal Capital Management now owns 8,934 shares of the software company's stock worth $3,151,000 after purchasing an additional 3,925 shares during the period. 81.79% of the stock is owned by institutional investors and hedge funds.

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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