Adobe (NASDAQ:ADBE) Trading Down 4.1% - Here's Why

Adobe Inc. (NASDAQ:ADBE - Get Free Report) dropped 4.1% on Wednesday . The company traded as low as $372.73 and last traded at $375.85. Approximately 2,742,864 shares changed hands during trading, a decline of 20% from the average daily volume of 3,408,510 shares. The stock had previously closed at $392.10.

Analyst Ratings Changes

Several analysts have issued reports on the company. Jefferies Financial Group cut their target price on Adobe from $650.00 to $590.00 and set a "buy" rating for the company in a research note on Monday, March 31st. Piper Sandler decreased their target price on Adobe from $600.00 to $500.00 and set an "overweight" rating for the company in a report on Wednesday, April 23rd. Bank of America raised their target price on shares of Adobe from $424.00 to $475.00 and gave the stock a "buy" rating in a research report on Friday, June 13th. Royal Bank Of Canada reissued an "outperform" rating and issued a $480.00 price target on shares of Adobe in a research note on Thursday, June 5th. Finally, Phillip Securities raised Adobe from a "moderate sell" rating to a "strong-buy" rating in a research report on Monday, June 16th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, seventeen have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Adobe has an average rating of "Moderate Buy" and an average target price of $480.08.

Adobe Trading Up 0.3%

The firm's 50 day moving average price is $395.48 and its 200-day moving average price is $409.36. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.99 and a quick ratio of 0.99. The stock has a market cap of $161.01 billion, a P/E ratio of 24.28, a P/E/G ratio of 1.86 and a beta of 1.51.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, June 12th. The software company reported $5.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.97 by $0.09. The business had revenue of $5.87 billion for the quarter, compared to analysts' expectations of $5.80 billion. Adobe had a return on equity of 53.68% and a net margin of 30.39%. The firm's quarterly revenue was up 10.6% on a year-over-year basis. During the same period in the prior year, the firm posted $4.48 EPS. As a group, equities research analysts forecast that Adobe Inc. will post 16.65 earnings per share for the current year.

Hedge Funds Weigh In On Adobe

A number of hedge funds have recently bought and sold shares of the business. Copia Wealth Management bought a new position in Adobe during the fourth quarter valued at approximately $28,000. SWAN Capital LLC bought a new position in shares of Adobe during the 4th quarter valued at approximately $28,000. 1248 Management LLC purchased a new stake in shares of Adobe in the first quarter worth $25,000. Barnes Dennig Private Wealth Management LLC purchased a new stake in Adobe in the 1st quarter worth $26,000. Finally, Summit Securities Group LLC purchased a new position in Adobe in the 4th quarter worth approximately $31,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

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.