Adobe (NASDAQ:ADBE) Trading Down 1.5% - Time to Sell?

Key Points

• Adobe's stock price fell 1.5%, trading at $358.68 after reaching a low of $354.27, with trading volume down 66% compared to its average.
• Brokerages have reduced their price targets for Adobe, with Oppenheimer and Piper Sandler both lowering their estimates from $530.00 and $600.00 to $500.00, maintaining "outperform" and "overweight" ratings, respectively.
• The company's quarterly earnings showed a notable performance with $5.06 earnings per share, exceeding expectations, and revenue growth of 10.6% year-over-year.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s share price traded down 1.5% during mid-day trading on Thursday . The stock traded as low as $354.27 and last traded at $358.68. 1,262,164 shares traded hands during trading, a decline of 66% from the average session volume of 3,747,059 shares. The stock had previously closed at $364.00.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Royal Bank Of Canada reissued an "outperform" rating and set a $480.00 target price on shares of Adobe in a report on Thursday, June 5th. Rothschild & Co Redburn cut shares of Adobe from a "neutral" rating to a "sell" rating and set a $280.00 target price for the company. in a report on Wednesday, July 2nd. JMP Securities reissued a "market perform" rating on shares of Adobe in a report on Monday, June 23rd. Wall Street Zen raised shares of Adobe from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Finally, Mizuho reduced their target price on shares of Adobe from $575.00 to $530.00 and set an "outperform" rating for the company in a report on Friday, June 13th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, Adobe currently has an average rating of "Moderate Buy" and an average price target of $473.88.

Adobe Stock Down 1.5%

The stock has a market capitalization of $149.46 billion, a price-to-earnings ratio of 22.51, a price-to-earnings-growth ratio of 1.73 and a beta of 1.51. The business's 50-day moving average is $386.92 and its two-hundred day moving average is $399.51. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.54.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings results 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. The firm 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%. Adobe's quarterly revenue was up 10.6% on a year-over-year basis. During the same period in the previous year, the business posted $4.48 earnings per share. Equities analysts anticipate that Adobe Inc. will post 16.65 EPS for the current year.

Hedge Funds Weigh In On Adobe

A number of institutional investors and hedge funds have recently bought and sold shares of ADBE. Brighton Jones LLC boosted its position in Adobe by 2.1% during the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company's stock worth $3,588,000 after acquiring an additional 167 shares during the last quarter. Bank Pictet & Cie Europe AG boosted its holdings in Adobe by 2.7% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 28,969 shares of the software company's stock valued at $12,882,000 after purchasing an additional 756 shares during the last quarter. Private Portfolio Partners LLC boosted its holdings in Adobe by 3.9% in the 4th quarter. Private Portfolio Partners LLC now owns 929 shares of the software company's stock valued at $413,000 after purchasing an additional 35 shares during the last quarter. OneAscent Financial Services LLC boosted its holdings in Adobe by 25.3% in the 4th quarter. OneAscent Financial Services LLC now owns 1,034 shares of the software company's stock valued at $460,000 after purchasing an additional 209 shares during the last quarter. Finally, Westpac Banking Corp boosted its holdings in Adobe by 28.7% in the 4th quarter. Westpac Banking Corp now owns 14,530 shares of the software company's stock valued at $6,461,000 after purchasing an additional 3,242 shares during the last quarter. 81.79% of the stock is currently 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.