Adobe (NASDAQ:ADBE) Trading Down 1.9% - What's Next?

Key Points

• Adobe's stock fell 1.9%, trading at $339.17 with a significant drop in trading volume, down 73% from its average daily volume.
• Analysts have adjusted their price targets for Adobe; Citigroup reduced theirs to $450, while Wells Fargo increased theirs to $470, resulting in a consensus target price of $473.88.
• Institutional investors hold 81.79% of Adobe's shares, with several hedge funds increasing their stakes during the fourth quarter.

Adobe Inc. (NASDAQ:ADBE - Get Free Report)'s share price dropped 1.9% during mid-day trading on Thursday . The stock traded as low as $341.50 and last traded at $339.17. Approximately 1,015,317 shares changed hands during trading, a decline of 73% from the average daily volume of 3,771,876 shares. The stock had previously closed at $345.62.

Analysts Set New Price Targets

A number of research firms have issued reports on ADBE. Citigroup cut their price objective on shares of Adobe from $465.00 to $450.00 and set a "neutral" rating on the stock in a report on Monday, June 16th. Mizuho cut their target price on Adobe from $575.00 to $530.00 and set an "outperform" rating on the stock in a research note on Friday, June 13th. Oppenheimer dropped their target price on shares of Adobe from $530.00 to $500.00 and set an "outperform" rating on the stock in a research note on Friday, June 13th. Rothschild & Co Redburn lowered shares of Adobe from a "neutral" rating to a "sell" rating and set a $280.00 price target for the company. in a research note on Wednesday, July 2nd. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $470.00 price objective (up previously from $430.00) on shares of Adobe in a research note on Friday, June 13th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $473.88.

Adobe Price Performance

The company has a market cap of $143.49 billion, a PE ratio of 21.64, a price-to-earnings-growth ratio of 1.61 and a beta of 1.51. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.54. The firm has a 50 day simple moving average of $381.52 and a 200-day simple moving average of $397.33.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, June 12th. The software company reported $5.06 EPS for the quarter, topping analysts' consensus estimates of $4.97 by $0.09. The company had revenue of $5.87 billion during the quarter, compared to analysts' expectations of $5.80 billion. Adobe had a return on equity of 53.68% and a net margin of 30.39%. The firm's revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.48 EPS. As a group, research analysts predict that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Adobe

Institutional investors and hedge funds have recently bought and sold shares of the business. Cadence Bank increased its position in shares of Adobe by 0.5% during the fourth quarter. Cadence Bank now owns 4,883 shares of the software company's stock valued at $2,171,000 after acquiring an additional 22 shares during the last quarter. Eagle Strategies LLC grew its stake in Adobe by 1.5% in the 4th quarter. Eagle Strategies LLC now owns 1,465 shares of the software company's stock valued at $651,000 after purchasing an additional 22 shares during the period. RB Capital Management LLC boosted its holdings in shares of Adobe by 0.4% in the 4th quarter. RB Capital Management LLC now owns 4,944 shares of the software company's stock worth $2,198,000 after buying an additional 22 shares during the last quarter. Orin Green Financial LLC grew its position in Adobe by 3.8% during the fourth quarter. Orin Green Financial LLC now owns 621 shares of the software company's stock valued at $276,000 after buying an additional 23 shares during the period. Finally, Schmidt P J Investment Management Inc. increased its holdings in Adobe by 2.9% during the first quarter. Schmidt P J Investment Management Inc. now owns 896 shares of the software company's stock worth $344,000 after buying an additional 25 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

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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