Adobe (NASDAQ:ADBE) Shares Up 1.8% - What's Next?

Key Points

• Adobe's share price increased by 1.8%, reaching $360.37 after trading as high as $360.72, despite a decline in trading volume compared to average sessions.
• Recent analyst ratings show mixed sentiments, with BMO lowering its target price from $450 to $405 and Wells Fargo raising its target to $470, indicating varied confidence in Adobe's future performance.
• The company reported strong quarterly earnings, with a net revenue of $5.99 billion and earnings per share of $5.31, exceeding analyst expectations and reflecting a 10.7% year-over-year growth.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s share price shot up 1.8% during trading on Friday . The company traded as high as $360.72 and last traded at $360.37. 3,062,946 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 3,963,258 shares. The stock had previously closed at $354.16.

Wall Street Analyst Weigh In

A number of research firms have commented on ADBE. BMO Capital Markets reduced their target price on Adobe from $450.00 to $405.00 and set an "outperform" rating for the company in a report on Friday, September 12th. JMP Securities reissued a "market perform" rating on shares of Adobe in a report on Friday, September 12th. Wells Fargo & Company reissued an "overweight" rating and issued a $470.00 target price (up previously from $430.00) on shares of Adobe in a report on Friday, June 13th. Redburn Atlantic lowered Adobe from a "hold" rating to a "strong sell" rating and reduced their target price for the stock from $420.00 to $280.00 in a report on Wednesday, July 2nd. Finally, Evercore ISI reduced their target price on Adobe from $475.00 to $450.00 and set an "outperform" rating for the company in a report on Friday, September 12th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $433.41.

Adobe Stock Up 1.8%

The company has a fifty day simple moving average of $355.36 and a 200-day simple moving average of $374.59. The company has a quick ratio of 0.99, a current ratio of 1.02 and a debt-to-equity ratio of 0.53. The firm has a market cap of $152.87 billion, a P/E ratio of 22.45, a price-to-earnings-growth ratio of 1.58 and a beta of 1.48.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.18 by $0.13. Adobe had a return on equity of 57.54% and a net margin of 30.01%.The business had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.91 billion. During the same quarter in the previous year, the company posted $4.65 earnings per share. Adobe'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. On average, equities analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current year.

Hedge Funds Weigh In On Adobe

Large investors have recently made changes to their positions in the business. Copia Wealth Management purchased a new position in shares of Adobe in the fourth quarter valued at about $28,000. 1248 Management LLC purchased a new position in shares of Adobe in the first quarter valued at about $25,000. Barnes Dennig Private Wealth Management LLC purchased a new position in shares of Adobe in the first quarter valued at about $26,000. LSV Asset Management lifted its position in shares of Adobe by 350.0% in the second quarter. LSV Asset Management now owns 72 shares of the software company's stock valued at $28,000 after acquiring an additional 56 shares in the last quarter. Finally, Flaharty Asset Management LLC purchased a new position in shares of Adobe in the first quarter valued at about $29,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

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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