Melius Research Upgrades Adobe (NASDAQ:ADBE) to Strong Sell

Key Points

• Adobe was recently upgraded to a "strong sell" rating by analysts at Melius Research, indicating a negative outlook on the stock.
• The stock currently has an average price target of $467.58, with numerous analysts maintaining varying ratings from "sell" to "strong buy."
• Adobe reported earnings of $5.06 per share for the last quarter, beating expectations and reflecting a year-over-year revenue increase of 10.6%.

Adobe (NASDAQ:ADBE - Get Free Report) was upgraded by analysts at Melius Research to a "strong sell" rating in a report released on Monday,Zacks.com reports.

Other research analysts have also recently issued reports about the stock. Oppenheimer reduced their price objective on shares of Adobe from $530.00 to $500.00 and set an "outperform" rating for the company in a report on Friday, June 13th. Bank of America lifted their price objective on shares of Adobe from $424.00 to $475.00 and gave the company a "buy" rating in a report on Friday, June 13th. DA Davidson reiterated a "buy" rating and set a $500.00 price objective on shares of Adobe in a report on Friday, June 20th. Robert W. Baird lifted their price objective on shares of Adobe from $410.00 to $425.00 and gave the company a "neutral" rating in a report on Monday, June 16th. Finally, BMO Capital Markets reiterated an "outperform" rating and set a $450.00 price objective on shares of Adobe in a report on Friday, June 13th. Four research analysts have rated the stock with a sell rating, eight have issued a hold rating, sixteen have assigned a buy rating and two have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Adobe has an average rating of "Moderate Buy" and a consensus target price of $467.58.

Adobe Stock Down 0.7%

ADBE traded down $2.49 during midday trading on Monday, hitting $348.58. The company had a trading volume of 3,742,921 shares, compared to its average volume of 3,564,123. Adobe has a 52 week low of $330.04 and a 52 week high of $587.75. 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 company has a market capitalization of $147.87 billion, a price-to-earnings ratio of 22.30, a PEG ratio of 1.66 and a beta of 1.51. The stock's 50 day moving average price is $373.08 and its 200 day moving average price is $393.45.

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

Institutional Investors Weigh In On Adobe

Institutional investors have recently made changes to their positions in the business. Garde Capital Inc. purchased a new stake in shares of Adobe in the 1st quarter worth about $34,000. PFG Advisors lifted its position in shares of Adobe by 20.8% in the 1st quarter. PFG Advisors now owns 4,964 shares of the software company's stock worth $1,904,000 after purchasing an additional 855 shares during the period. Krane Funds Advisors LLC lifted its position in shares of Adobe by 110.4% in the 1st quarter. Krane Funds Advisors LLC now owns 1,391 shares of the software company's stock worth $533,000 after purchasing an additional 730 shares during the period. Burling Wealth Partners LLC purchased a new stake in shares of Adobe in the 4th quarter worth about $1,173,000. Finally, Financial Counselors Inc. lifted its position in shares of Adobe by 9.2% in the 1st quarter. Financial Counselors Inc. now owns 62,851 shares of the software company's stock worth $24,105,000 after purchasing an additional 5,298 shares during the period. 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.