Adobe (NASDAQ:ADBE) Hits New 52-Week Low - What's Next?

Key Points

• Adobe's stock reached a new 52-week low of $329.21 during trading, closing at $330.81 after significant volume of 2,373,428 shares was traded.
• Despite recent downgrades and price target reductions from various firms, Wall Street analysts maintain a consensus rating of "Hold" with an average target price of $433.41.
• Adobe reported a quarterly earnings per share (EPS) of $5.31, exceeding analyst estimates, and announced a projected EPS guidance of 20.800-20.850 for FY 2025.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s share price reached a new 52-week low during trading on Wednesday . The stock traded as low as $329.21 and last traded at $330.81, with a volume of 2373428 shares changing hands. The stock had previously closed at $335.94.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ADBE. BMO Capital Markets reduced their price objective on shares of Adobe from $450.00 to $405.00 and set an "outperform" rating for the company in a research report on Friday, September 12th. Wall Street Zen upgraded shares of Adobe from a "hold" rating to a "buy" rating in a research report on Friday, September 5th. Morgan Stanley lowered shares of Adobe from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $520.00 to $450.00 in a research report on Wednesday, September 24th. Mizuho lowered shares of Adobe from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 24th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Adobe in a research report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $433.41.

Adobe Stock Performance

The firm's fifty day simple moving average is $351.63 and its 200 day simple moving average is $369.85. The company has a market capitalization of $138.36 billion, a price-to-earnings ratio of 20.59, a PEG ratio of 1.52 and a beta of 1.49. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.02 and a quick ratio of 1.02.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Marshall & Sullivan Inc. WA grew its position in Adobe by 1.5% during the third quarter. Marshall & Sullivan Inc. WA now owns 11,789 shares of the software company's stock valued at $4,159,000 after purchasing an additional 169 shares in the last quarter. Robbins Farley grew its position in Adobe by 11.3% during the third quarter. Robbins Farley now owns 5,408 shares of the software company's stock valued at $1,908,000 after purchasing an additional 551 shares in the last quarter. Milestone Asset Management LLC grew its position in Adobe by 17.4% during the third quarter. Milestone Asset Management LLC now owns 1,421 shares of the software company's stock valued at $501,000 after purchasing an additional 211 shares in the last quarter. Jeppson Wealth Management LLC raised its position in Adobe by 2.7% during the third quarter. Jeppson Wealth Management LLC now owns 1,535 shares of the software company's stock valued at $541,000 after acquiring an additional 40 shares in the last quarter. Finally, Harbor Capital Advisors Inc. raised its position in Adobe by 1.4% during the third quarter. Harbor Capital Advisors Inc. now owns 9,028 shares of the software company's stock valued at $3,185,000 after acquiring an additional 123 shares in 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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