Adobe (NASDAQ:ADBE) Trading Down 1.3% - What's Next?

Key Points

• Adobe Inc. shares decreased by 1.3% to $346.74 with a trading volume decline of 22% compared to the average.
• Multiple analysts have downgraded Adobe's price targets, with values ranging from $400.00 to $430.00, while one firm upgraded its rating to a strong buy.
• Adobe reported $5.31 earnings per share for the last quarter, surpassing expectations, while forecasting 20.800-20.850 EPS for FY 2025.

Shares of Adobe Inc. (NASDAQ:ADBE - Get Free Report) fell 1.3% during mid-day trading on Friday . The stock traded as low as $346.31 and last traded at $346.74. 3,116,740 shares traded hands during trading, a decline of 22% from the average session volume of 3,980,255 shares. The stock had previously closed at $351.48.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on ADBE. Royal Bank Of Canada dropped their price target on shares of Adobe from $480.00 to $430.00 and set an "outperform" rating for the company in a research note on Monday, September 8th. TD Cowen dropped their price target on shares of Adobe from $470.00 to $420.00 and set a "hold" rating for the company in a research note on Friday, September 12th. Citigroup lowered their target price on shares of Adobe from $450.00 to $400.00 and set a "neutral" rating for the company in a research note on Thursday, September 11th. BMO Capital Markets lowered their target price on shares of Adobe from $450.00 to $405.00 and set an "outperform" rating for the company in a research note on Friday, September 12th. Finally, Phillip Securities raised shares of Adobe from a "moderate sell" rating to a "strong-buy" rating in a research note on Monday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $433.41.

Adobe Trading Down 1.3%

The firm has a market capitalization of $145.15 billion, a PE ratio of 21.60, a PEG ratio of 1.58 and a beta of 1.49. The firm's fifty day moving average is $353.22 and its two-hundred day moving average is $372.37. 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 released its quarterly earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share for the quarter, topping 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 analysts' expectations of $5.91 billion. During the same period in the previous year, the company earned $4.65 earnings per share. The firm'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 predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Institutional Trading of Adobe

Several hedge funds have recently added to or reduced their stakes in the stock. Schmidt P J Investment Management Inc. raised its position in Adobe by 2.9% in the first quarter. Schmidt P J Investment Management Inc. now owns 896 shares of the software company's stock worth $344,000 after acquiring an additional 25 shares during the period. GS Investments Inc. raised its position in shares of Adobe by 0.3% in the first quarter. GS Investments Inc. now owns 7,563 shares of the software company's stock valued at $2,901,000 after purchasing an additional 26 shares during the period. Ted Buchan & Co raised its position in shares of Adobe by 1.9% in the first quarter. Ted Buchan & Co now owns 1,368 shares of the software company's stock valued at $525,000 after purchasing an additional 26 shares during the period. Lifeworks Advisors LLC raised its position in shares of Adobe by 3.6% in the first quarter. Lifeworks Advisors LLC now owns 786 shares of the software company's stock valued at $301,000 after purchasing an additional 27 shares during the period. Finally, VanderPol Investments L.L.C. raised its position in shares of Adobe by 5.2% in the first quarter. VanderPol Investments L.L.C. now owns 546 shares of the software company's stock valued at $209,000 after purchasing an additional 27 shares during the period. 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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