Adobe (NASDAQ:ADBE) Trading 2.3% Higher - Still a Buy?

Key Points

• Adobe's stock rose by 2.3% to $351.48, with a market capitalization of $147.13 billion and a PE ratio of 21.90.
• Analysts have mixed ratings for Adobe; while one has a Strong Buy rating, others have downgraded their targets significantly, with the lowest set at $280.
• The company reported earnings of $5.31 per share, exceeding estimates, and set guidance for FY 2025 EPS between 20.800 and 20.850.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) traded up 2.3% on Thursday . The stock traded as high as $351.73 and last traded at $351.48. 3,943,361 shares traded hands during trading, a decline of 1% from the average session volume of 3,984,786 shares. The stock had previously closed at $343.72.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on ADBE. Redburn Atlantic lowered Adobe from a "hold" rating to a "strong sell" rating and decreased their price objective for the stock from $420.00 to $280.00 in a report on Wednesday, July 2nd. Melius cut Adobe from a "hold" rating to a "sell" rating and set a $310.00 price objective on the stock. in a research note on Monday, August 11th. BMO Capital Markets cut their target price on Adobe from $450.00 to $405.00 and set an "outperform" rating on the stock in a research note on Friday, September 12th. Evercore ISI lowered their target price on shares of Adobe from $475.00 to $450.00 and set an "outperform" rating for the company in a report on Friday, September 12th. Finally, Redburn Partners set a $280.00 target price on shares of Adobe in a research report on Monday, September 1st. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Adobe has a consensus rating of "Hold" and a consensus price target of $433.41.

Adobe Price Performance

The stock's 50-day moving average is $354.11 and its 200 day moving average is $373.01. The company has a market cap of $147.13 billion, a PE ratio of 21.90, a PEG ratio of 1.58 and a beta of 1.49. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.02 and a quick ratio of 1.02.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results 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. Adobe had a net margin of 30.01% and a return on equity of 57.54%. The business had revenue of $5.99 billion for the quarter, compared to analyst estimates of $5.91 billion. During the same quarter last year, the business earned $4.65 earnings per share. The company's revenue for the quarter 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, equities analysts anticipate that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Adobe

Hedge funds and other institutional investors have recently modified their holdings of the company. 1248 Management LLC purchased a new position in shares of Adobe in the first quarter valued at $25,000. Barnes Dennig Private Wealth Management LLC acquired a new stake in shares of Adobe in the 1st quarter worth about $26,000. LSV Asset Management increased its holdings in shares of Adobe by 350.0% in the 2nd quarter. LSV Asset Management now owns 72 shares of the software company's stock worth $28,000 after acquiring an additional 56 shares during the period. Flaharty Asset Management LLC acquired a new stake in shares of Adobe in the 1st quarter worth about $29,000. Finally, HHM Wealth Advisors LLC bought a new position in Adobe in the 1st quarter valued at about $30,000. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

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.

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