Adobe (NASDAQ:ADBE) Stock Price Up 3.8% - Here's What Happened

Key Points

• Shares of Adobe rose 3.8% on Friday to about $324.19 (intraday high $327.75), with volume of ~4.79M shares—about 22% above the average daily volume.
• Several brokerages have trimmed ratings and price targets (e.g., Morgan Stanley cut to "equal weight" and lowered its target to $450); MarketBeat's consensus is a "Hold" with an average price target of $428.96.
• Adobe beat September-quarter estimates (EPS $5.31 vs. $5.18; revenue $5.99B vs. $5.91B) and provided FY2025 guidance of EPS 20.80–20.85 and Q4 guidance of 5.35–5.40.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) shares rose 3.8% on Friday . The company traded as high as $327.75 and last traded at $324.19. Approximately 4,786,958 shares traded hands during mid-day trading, an increase of 22% from the average daily volume of 3,923,294 shares. The stock had previously closed at $312.40.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on ADBE. Morgan Stanley cut Adobe from an "overweight" rating to an "equal weight" rating and reduced their price objective for the stock from $520.00 to $450.00 in a report on Wednesday, September 24th. Wall Street Zen cut Adobe from a "buy" rating to a "hold" rating in a research report on Saturday, November 8th. Evercore ISI decreased their price objective on shares of Adobe from $475.00 to $450.00 and set an "outperform" rating on the stock in a research report on Friday, September 12th. Cowen restated a "hold" rating on shares of Adobe in a report on Wednesday, October 29th. Finally, JMP Securities restated a "market perform" rating on shares of Adobe in a research report on Friday, September 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Adobe presently has a consensus rating of "Hold" and a consensus price target of $428.96.

Adobe Price Performance

The company has a market capitalization of $135.71 billion, a price-to-earnings ratio of 20.20, a PEG ratio of 1.51 and a beta of 1.47. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The company's 50 day simple moving average is $343.95 and its 200-day simple moving average is $365.61.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data 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. The business had revenue of $5.99 billion for the quarter, compared to the consensus estimate of $5.91 billion. Adobe had a net margin of 30.01% and a return on equity of 57.54%. The company's quarterly revenue was up 10.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.65 earnings per share. 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 research analysts predict that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Jillian Forusz sold 149 shares of the stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at approximately $1,157,576.88. This represents a 4.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.16% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in Adobe by 0.8% during the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock worth $14,593,054,000 after purchasing an additional 344,816 shares during the last quarter. State Street Corp grew its stake in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after buying an additional 352,448 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Adobe by 53.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after buying an additional 1,952,994 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Adobe by 2.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,468,383 shares of the software company's stock worth $2,097,289,000 after buying an additional 126,688 shares during the period. Finally, Norges Bank acquired a new position in Adobe in the second quarter valued at $2,029,950,000. Institutional investors and hedge funds 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.

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