Citigroup Has Lowered Expectations for Adobe (NASDAQ:ADBE) Stock Price

Key Points

• Citigroup cut its price target on Adobe from $400 to $366 and kept a "neutral" rating, implying about an 11.37% upside from the stock's previous close.
• Several other firms have trimmed targets (e.g., UBS, Morgan Stanley, TD Cowen), and MarketBeat shows a consensus rating of "Hold" with a consensus target of $427.70.
• Adobe recently beat quarterly EPS and revenue estimates and set FY2025 EPS guidance of 20.800–20.850, yet the stock trades around $328.62 — institutional investors own ~81.8% of shares and an insider disclosed a small sale.

Adobe (NASDAQ:ADBE - Get Free Report) had its price objective dropped by stock analysts at Citigroup from $400.00 to $366.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the software company's stock. Citigroup's price target would indicate a potential upside of 11.37% from the stock's previous close.

Other equities research analysts have also issued reports about the stock. UBS Group cut their price objective on shares of Adobe from $400.00 to $375.00 and set a "neutral" rating for the company in a report on Friday, September 12th. Morgan Stanley downgraded shares of Adobe from an "overweight" rating to an "equal weight" rating and reduced their price target for the company from $520.00 to $450.00 in a report on Wednesday, September 24th. Cowen reiterated a "hold" rating on shares of Adobe in a research note on Wednesday, October 29th. DA Davidson restated a "buy" rating and set a $500.00 price target on shares of Adobe in a report on Thursday, November 20th. Finally, TD Cowen decreased their target price on shares of Adobe from $470.00 to $420.00 and set a "hold" rating on the stock in a research report on Friday, September 12th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $427.70.

Adobe Stock Performance

ADBE traded up $1.84 during trading on Thursday, hitting $328.62. The company's stock had a trading volume of 1,838,623 shares, compared to its average volume of 3,902,131. Adobe has a one year low of $311.58 and a one year high of $557.90. The business's 50 day simple moving average is $337.27 and its 200-day simple moving average is $360.89. The firm has a market cap of $137.56 billion, a PE ratio of 20.51, a P/E/G ratio of 1.18 and a beta of 1.54. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.53.

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 (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 business had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.91 billion. During the same quarter in the previous year, the company posted $4.65 earnings per share. Adobe's revenue for the quarter was up 10.7% on a year-over-year basis. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS and its Q4 2025 guidance at 5.350-5.400 EPS. As a group, sell-side analysts predict that Adobe will post 16.65 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Jillian Forusz sold 149 shares of the firm's stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total value of $50,344.12. Following the completion of the transaction, the chief accounting officer directly owned 3,426 shares in the company, valued at $1,157,576.88. This trade represents a 4.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Adobe

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Adobe by 0.8% in the third quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company's stock worth $14,593,054,000 after acquiring an additional 344,816 shares during the period. State Street Corp increased its stake in shares of Adobe by 1.7% in the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company's stock valued at $7,277,941,000 after purchasing an additional 352,448 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Adobe by 53.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Adobe by 2.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,468,383 shares of the software company's stock worth $2,097,289,000 after purchasing an additional 126,688 shares in the last quarter. Finally, Norges Bank acquired a new stake in Adobe in the second quarter valued at approximately $2,029,950,000. Institutional investors and hedge funds 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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