Adobe (NASDAQ:ADBE) Shares Down 1.9% - Should You Sell?

Key Points

• Adobe's shares dropped 1.9% to a trading price of $352.75, with trading volumes increasing by 34% compared to average daily volume.
• Multiple analysts have recently downgraded Adobe's stock ratings, with Melius setting a new target price of $310.00 and several others adjusting their targets downward.
• Despite recent downgrades, the company reported earnings that exceeded expectations, with a revenue of $5.99 billion for the quarter, showing a 10.7% increase year-over-year.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s share price dropped 1.9% on Tuesday . The company traded as low as $349.90 and last traded at $352.75. Approximately 5,304,277 shares traded hands during mid-day trading, an increase of 34% from the average daily volume of 3,971,095 shares. The stock had previously closed at $359.42.

Analysts Set New Price Targets

ADBE has been the subject of a number of research reports. Melius lowered shares of Adobe from a "hold" rating to a "sell" rating and set a $310.00 price target for the company. in a report on Monday, August 11th. Redburn Partners set a $280.00 target price on shares of Adobe in a research report on Monday, September 1st. Oppenheimer cut their target price on shares of Adobe from $500.00 to $460.00 and set an "outperform" rating on the stock in a research report on Tuesday, September 9th. Mizuho downgraded shares of Adobe from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 24th. Finally, Stifel Nicolaus cut their target price on shares of Adobe from $525.00 to $480.00 and set a "buy" rating on the stock in a research report on Friday, June 13th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $433.41.

Adobe Trading Down 1.9%

The company's fifty day simple moving average is $355.08 and its two-hundred day simple moving average is $373.36. 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 company has a market capitalization of $147.66 billion, a price-to-earnings ratio of 21.98, a price-to-earnings-growth ratio of 1.62 and a beta of 1.48.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results 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 company had revenue of $5.99 billion for the quarter, compared to analyst estimates of $5.91 billion. Adobe had a net margin of 30.01% and a return on equity of 57.54%. The business's revenue for the quarter was up 10.7% compared to the same quarter last year. During the same period last year, the business posted $4.65 earnings per share. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. Research analysts forecast that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Adobe

Several hedge funds have recently bought and sold shares of ADBE. Norges Bank acquired a new stake in Adobe in the second quarter worth $2,029,950,000. Assenagon Asset Management S.A. raised its holdings in shares of Adobe by 308.1% during the second quarter. Assenagon Asset Management S.A. now owns 3,109,436 shares of the software company's stock worth $1,202,979,000 after acquiring an additional 2,347,562 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Adobe by 68.3% during the first quarter. Goldman Sachs Group Inc. now owns 4,575,792 shares of the software company's stock worth $1,754,954,000 after acquiring an additional 1,856,544 shares during the period. Nuveen LLC acquired a new stake in shares of Adobe during the first quarter worth $607,443,000. Finally, OVERSEA CHINESE BANKING Corp Ltd raised its holdings in shares of Adobe by 1,482.7% during the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 1,298,389 shares of the software company's stock worth $498,000 after acquiring an additional 1,216,351 shares during the period. 81.79% of the stock is currently 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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