Adobe (NASDAQ:ADBE) Shares Down 1.6% - Should You Sell?

Key Points

• Adobe's stock fell 1.6% to $330.63 amid trading, with a 50-day moving average of $351.63, indicating recent price volatility.
• Recent analyst ratings are mixed: Melius downgraded Adobe to "sell" with a target of $310, while Wall Street Zen upgraded it to "buy" with a consensus target price of $433.41.
• Adobe reported a recent earnings per share of $5.31, beating estimates and reflecting an increase of 10.7% year-over-year, despite analysts predicting 16.65 EPS for the current year.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) fell 1.6% during trading on Wednesday . The company traded as low as $329.21 and last traded at $330.63. 3,879,731 shares traded hands during mid-day trading, a decline of 2% from the average session volume of 3,965,746 shares. The stock had previously closed at $335.94.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on ADBE shares. Melius lowered Adobe from a "hold" rating to a "sell" rating and set a $310.00 price objective on the stock. in a research note on Monday, August 11th. Piper Sandler reduced their price objective on Adobe from $500.00 to $470.00 and set an "overweight" rating on the stock in a research note on Friday, September 12th. TD Cowen reduced their price target on Adobe from $470.00 to $420.00 and set a "hold" rating on the stock in a research report on Friday, September 12th. Wall Street Zen raised Adobe from a "hold" rating to a "buy" rating in a research report on Friday, September 5th. Finally, Citigroup reduced their price target on Adobe from $450.00 to $400.00 and set a "neutral" rating on the stock in a research report on Thursday, September 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Adobe presently has a consensus rating of "Hold" and a consensus target price of $433.41.

Adobe Stock Down 1.6%

The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The stock has a 50-day simple moving average of $351.63 and a 200-day simple moving average of $369.85. The company has a market cap of $138.40 billion, a price-to-earnings ratio of 20.60, a price-to-earnings-growth ratio of 1.52 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, beating 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 company had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.91 billion. During the same quarter last year, the firm posted $4.65 EPS. The business's revenue for the quarter was up 10.7% on a year-over-year basis. 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 Inc. will post 16.65 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Schmidt P J Investment Management Inc. lifted its stake in Adobe by 2.9% during the first quarter. Schmidt P J Investment Management Inc. now owns 896 shares of the software company's stock worth $344,000 after purchasing an additional 25 shares during the last quarter. GS Investments Inc. lifted its stake in Adobe by 0.3% during the first quarter. GS Investments Inc. now owns 7,563 shares of the software company's stock worth $2,901,000 after purchasing an additional 26 shares during the last quarter. Ted Buchan & Co lifted its stake in Adobe by 1.9% during the first quarter. Ted Buchan & Co now owns 1,368 shares of the software company's stock worth $525,000 after purchasing an additional 26 shares during the last quarter. Lifeworks Advisors LLC lifted its stake in Adobe by 3.6% during the first quarter. Lifeworks Advisors LLC now owns 786 shares of the software company's stock worth $301,000 after purchasing an additional 27 shares during the last quarter. Finally, VanderPol Investments L.L.C. lifted its stake in Adobe by 5.2% during the first quarter. VanderPol Investments L.L.C. now owns 546 shares of the software company's stock worth $209,000 after purchasing an additional 27 shares during the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe Company Profile

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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