Adobe (NASDAQ:ADBE) Stock Price Up 4.1% - Should You Buy?

Key Points

• Adobe's stock price rose by 4.1% on Tuesday, reaching a trading price of $357.55, which is an increase from its previous close at $343.40.
• Analysts have set a consensus rating of "Hold" for Adobe with an average target price of $433.41, although ratings vary widely among firms.
• Adobe reported a 10.7% increase in quarterly revenue year-over-year, posting earnings of $5.31 per share, surpassing analysts' expectations.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) traded up 4.1% on Tuesday . The stock traded as high as $358.37 and last traded at $357.55. 4,378,478 shares traded hands during mid-day trading, an increase of 10% from the average session volume of 3,971,266 shares. The stock had previously closed at $343.40.

Analysts Set New Price Targets

A number of research firms have commented on ADBE. UBS Group decreased their target price on Adobe from $400.00 to $375.00 and set a "neutral" rating on the stock in a research report on Friday, September 12th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Adobe in a research report on Wednesday, October 8th. DA Davidson restated a "buy" rating and set a $500.00 target price on shares of Adobe in a report on Friday, September 12th. Mizuho cut shares of Adobe from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 24th. Finally, Oppenheimer lowered their price target on shares of Adobe from $500.00 to $460.00 and set an "outperform" rating on the stock in a research report on Tuesday, September 9th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $433.41.

Adobe Trading Up 4.1%

The business has a 50 day simple moving average of $351.18 and a two-hundred day simple moving average of $368.72. 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 has a market cap of $149.67 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 1.49 and a beta of 1.49.

Adobe (NASDAQ:ADBE - Get Free Report) last released its earnings results on Thursday, September 11th. The software company reported $5.31 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $5.91 billion. During the same period in the prior year, the firm posted $4.65 earnings per share. The business's quarterly revenue was up 10.7% compared to the same quarter last year. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. On average, analysts forecast that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Hedge Funds Weigh In On Adobe

A number of large investors have recently bought and sold shares of ADBE. Garde Capital Inc. acquired a new position in shares of Adobe in the 1st quarter valued at about $34,000. PFG Advisors lifted its position in Adobe by 20.8% during the first quarter. PFG Advisors now owns 4,964 shares of the software company's stock valued at $1,904,000 after buying an additional 855 shares in the last quarter. Krane Funds Advisors LLC grew its stake in Adobe by 110.4% during the first quarter. Krane Funds Advisors LLC now owns 1,391 shares of the software company's stock worth $533,000 after buying an additional 730 shares during the period. Financial Counselors Inc. increased its position in shares of Adobe by 9.2% in the first quarter. Financial Counselors Inc. now owns 62,851 shares of the software company's stock worth $24,105,000 after acquiring an additional 5,298 shares in the last quarter. Finally, Koss Olinger Consulting LLC purchased a new position in shares of Adobe in the 1st quarter valued at $305,000. 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.

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