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

Key Points

• Adobe's stock reached a new 52-week low at $330.64 before closing at $336.60, indicating a significant drop in its trading performance.
• Analysts have adjusted their price targets for Adobe, with estimates ranging from $425.00 to $510.00, reflecting a mix of sell, hold, and buy ratings among market experts.
• For the last reported quarter, Adobe exceeded earnings expectations with $5.06 per share and a revenue of $5.87 billion, marking a 10.6% increase year-over-year.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The stock traded as low as $330.64 and last traded at $336.60, with a volume of 310266 shares. The stock had previously closed at $333.65.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Stifel Nicolaus decreased their price objective on Adobe from $525.00 to $480.00 and set a "buy" rating on the stock in a report on Friday, June 13th. Robert W. Baird raised their price objective on Adobe from $410.00 to $425.00 and gave the company a "neutral" rating in a report on Monday, June 16th. Morgan Stanley decreased their price objective on Adobe from $600.00 to $510.00 and set an "overweight" rating on the stock in a report on Wednesday, April 16th. Wells Fargo & Company restated an "overweight" rating and issued a $470.00 price objective (up previously from $430.00) on shares of Adobe in a report on Friday, June 13th. Finally, BMO Capital Markets restated an "outperform" rating and issued a $450.00 price objective on shares of Adobe in a report on Friday, June 13th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $467.58.

Adobe Stock Performance

The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $142.77 billion, a PE ratio of 21.51, a price-to-earnings-growth ratio of 1.62 and a beta of 1.51. The firm's fifty day moving average is $377.15 and its 200-day moving average is $394.76.

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

Institutional Investors Weigh In On Adobe

Several large investors have recently bought and sold shares of the stock. Garde Capital Inc. acquired a new position in Adobe during the 1st quarter worth approximately $34,000. PFG Advisors lifted its position in shares of Adobe by 20.8% during the 1st quarter. PFG Advisors now owns 4,964 shares of the software company's stock worth $1,904,000 after purchasing an additional 855 shares during the last quarter. Krane Funds Advisors LLC lifted its position in shares of Adobe by 110.4% during the 1st quarter. Krane Funds Advisors LLC now owns 1,391 shares of the software company's stock worth $533,000 after purchasing an additional 730 shares during the last quarter. Burling Wealth Partners LLC purchased a new stake in shares of Adobe during the 4th quarter worth $1,173,000. Finally, Financial Counselors Inc. lifted 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 worth $24,105,000 after purchasing an additional 5,298 shares during 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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