Adobe (NASDAQ:ADBE) Trading Down 1.3% - Should You Sell?

Key Points

• Adobe's stock price decreased by 1.3%, closing at $356.42, with a notable drop in trading volume, declining 70% from the average.
• Analysts have mixed ratings on the stock, with two giving a "Strong Buy" rating and a consensus target price set at $467.58.
• In its latest earnings report, Adobe exceeded estimates by posting $5.06 EPS, with revenue growing 10.6% year-over-year to $5.87 billion.

Shares of Adobe Inc. (NASDAQ:ADBE - Get Free Report) fell 1.3% during trading on Wednesday . The stock traded as low as $356.33 and last traded at $356.42. 1,138,058 shares traded hands during trading, a decline of 70% from the average session volume of 3,771,402 shares. The stock had previously closed at $361.03.

Analyst Ratings Changes

Several research firms have recently commented on ADBE. Bank of America lifted their price target on shares of Adobe from $424.00 to $475.00 and gave the company a "buy" rating in a research report on Friday, June 13th. Redburn Atlantic lowered shares of Adobe from a "hold" rating to a "strong sell" rating and reduced their price target for the company from $420.00 to $280.00 in a research report on Wednesday, July 2nd. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $480.00 price target on shares of Adobe in a research report on Thursday, June 5th. DA Davidson reaffirmed a "buy" rating and set a $500.00 price target on shares of Adobe in a research report on Friday, June 20th. Finally, Melius lowered shares of Adobe from a "hold" rating to a "sell" rating and set a $310.00 price target on the stock. in a research report on Monday, August 11th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $467.58.

Adobe Trading Up 1.4%

The business has a 50-day simple moving average of $367.17 and a 200-day simple moving average of $390.51. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.54. The company has a market cap of $152.06 billion, a PE ratio of 22.98, a price-to-earnings-growth ratio of 1.68 and a beta of 1.51.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data on Thursday, June 12th. The software company reported $5.06 earnings per share for the quarter, topping analysts' consensus estimates of $4.97 by $0.09. Adobe had a return on equity of 53.68% and a net margin of 30.39%.The business had revenue of $5.87 billion for the quarter, compared to analyst estimates of $5.80 billion. During the same quarter in the prior year, the company earned $4.48 earnings per share. The company's revenue was up 10.6% on a year-over-year basis. Adobe has set its Q3 2025 guidance at 5.150-5.200 EPS. FY 2025 guidance at 20.500-20.700 EPS. On average, analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Institutional Trading of Adobe

A number of large investors have recently modified their holdings of the stock. Cim Investment Management Inc. increased its position in shares of Adobe by 99.7% during the second quarter. Cim Investment Management Inc. now owns 7,438 shares of the software company's stock worth $3,093,000 after acquiring an additional 3,713 shares during the period. North Dallas Bank & Trust Co. purchased a new stake in shares of Adobe during the second quarter worth $1,654,000. B. Riley Wealth Advisors Inc. purchased a new stake in shares of Adobe during the second quarter worth $1,982,000. Newbridge Financial Services Group Inc. grew its stake in shares of Adobe by 29.5% during the second quarter. Newbridge Financial Services Group Inc. now owns 1,348 shares of the software company's stock worth $522,000 after purchasing an additional 307 shares in the last quarter. Finally, Cape Investment Advisory Inc. grew its stake in shares of Adobe by 14.0% during the second quarter. Cape Investment Advisory Inc. now owns 2,881 shares of the software company's stock worth $1,115,000 after purchasing an additional 353 shares in the last quarter. Hedge funds and other institutional investors own 81.79% of the company's stock.

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.