Adobe (NASDAQ:ADBE) Stock Price Up 3% - Still a Buy?

Key Points

• Adobe's stock increased by 3%, trading at $343.40 after previously closing at $333.26, with a trading volume of approximately 3.76 million shares.
• Equities research analysts have downgraded Adobe's stock ratings and price targets, with Citigroup lowering its objective from $450 to $400, while Melius set a new target of $310 with a "sell" rating.
• Adobe recently reported earnings of $5.31 per share, exceeding analysts' expectations and demonstrating a revenue increase of 10.7% year-over-year, with FY 2025 guidance set at 20.800-20.850 EPS.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) shares were up 3% on Monday . The company traded as high as $344.20 and last traded at $343.40. Approximately 3,756,609 shares changed hands during mid-day trading, a decline of 5% from the average daily volume of 3,968,372 shares. The stock had previously closed at $333.26.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on ADBE shares. Citigroup lowered their price objective on Adobe from $450.00 to $400.00 and set a "neutral" rating on the stock in a report on Thursday, September 11th. Redburn Partners set a $280.00 price objective on Adobe in a report on Monday, September 1st. Mizuho lowered Adobe from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 24th. Oppenheimer lowered their price objective on Adobe from $500.00 to $460.00 and set an "outperform" rating on the stock in a report on Tuesday, September 9th. Finally, Melius lowered Adobe from a "hold" rating to a "sell" rating and set a $310.00 price objective on the stock. in a report on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $433.41.

Adobe Price Performance

The company has a 50 day moving average price of $350.99 and a 200 day moving average price of $368.76. The firm has a market cap of $143.75 billion, a PE ratio of 21.40, a price-to-earnings-growth ratio of 1.49 and a beta of 1.49. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53.

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

Institutional Investors Weigh In On Adobe

Hedge funds and other institutional investors have recently modified their holdings of the company. 1248 Management LLC acquired a new position in Adobe in the 1st quarter valued at $25,000. Barnes Dennig Private Wealth Management LLC acquired a new position in Adobe in the 1st quarter valued at $26,000. LSV Asset Management raised its holdings in Adobe by 350.0% in the 2nd quarter. LSV Asset Management now owns 72 shares of the software company's stock valued at $28,000 after acquiring an additional 56 shares during the last quarter. Flaharty Asset Management LLC acquired a new position in Adobe in the 1st quarter valued at $29,000. Finally, HHM Wealth Advisors LLC acquired a new position in Adobe in the 1st quarter valued at $30,000. 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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