DA Davidson Issues Pessimistic Outlook for Adobe Earnings

Adobe Inc. (NASDAQ:ADBE - Free Report) - DA Davidson reduced their Q2 2025 earnings per share (EPS) estimates for shares of Adobe in a research note issued on Tuesday, April 15th. DA Davidson analyst G. Luria now anticipates that the software company will earn $4.00 per share for the quarter, down from their prior estimate of $4.03. DA Davidson has a "Buy" rating and a $450.00 price target on the stock. The consensus estimate for Adobe's current full-year earnings is $16.65 per share. DA Davidson also issued estimates for Adobe's FY2026 earnings at $18.79 EPS.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its earnings results on Wednesday, March 12th. The software company reported $5.08 earnings per share for the quarter, topping analysts' consensus estimates of $4.97 by $0.11. The business had revenue of $5.71 billion for the quarter, compared to analyst estimates of $5.66 billion. Adobe had a return on equity of 45.87% and a net margin of 25.85%. During the same period in the prior year, the company earned $4.48 EPS.

ADBE has been the subject of several other reports. Wells Fargo & Company lowered their target price on shares of Adobe from $640.00 to $600.00 and set an "overweight" rating for the company in a report on Friday, March 7th. BMO Capital Markets dropped their price objective on shares of Adobe from $495.00 to $450.00 and set an "outperform" rating on the stock in a report on Wednesday, April 16th. StockNews.com downgraded Adobe from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, March 4th. KeyCorp upgraded shares of Adobe from an "underweight" rating to a "sector weight" rating in a research report on Friday, March 21st. Finally, BNP Paribas raised shares of Adobe from an "underperform" rating to a "neutral" rating and set a $425.00 price objective for the company in a research note on Wednesday, January 15th. Eleven investment analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Adobe presently has an average rating of "Moderate Buy" and a consensus target price of $513.27.

Adobe Trading Down 1.8 %

Shares of ADBE traded down $6.36 during mid-day trading on Wednesday, hitting $342.44. 1,638,362 shares of the company's stock traded hands, compared to its average volume of 3,412,193. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.29. The business's 50-day moving average price is $403.54 and its 200-day moving average price is $449.67. The firm has a market capitalization of $145.95 billion, a P/E ratio of 27.62, a PEG ratio of 2.15 and a beta of 1.49. Adobe has a 1 year low of $332.01 and a 1 year high of $587.75.

Insider Transactions at Adobe

In other Adobe news, CFO Daniel Durn purchased 1,300 shares of the firm's stock in a transaction on Thursday, March 20th. The stock was bought at an average price of $390.58 per share, with a total value of $507,754.00. Following the transaction, the chief financial officer now directly owns 29,876 shares of the company's stock, valued at approximately $11,668,968.08. This represents a 4.55 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Jillian Forusz sold 334 shares of the company's stock in a transaction on Tuesday, January 28th. The stock was sold at an average price of $435.83, for a total value of $145,567.22. Following the sale, the chief accounting officer now directly owns 2,685 shares in the company, valued at $1,170,203.55. This represents a 11.06 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 5,075 shares of company stock valued at $2,191,826 in the last 90 days. 0.16% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Adobe

A number of institutional investors and hedge funds have recently made changes to their positions in ADBE. Institute for Wealth Management LLC. grew its holdings in Adobe by 0.3% during the 1st quarter. Institute for Wealth Management LLC. now owns 17,947 shares of the software company's stock worth $6,883,000 after acquiring an additional 53 shares in the last quarter. Bigelow Investment Advisors LLC lifted its position in shares of Adobe by 4.7% during the 1st quarter. Bigelow Investment Advisors LLC now owns 1,081 shares of the software company's stock worth $415,000 after buying an additional 49 shares during the last quarter. Johnson Investment Counsel Inc. raised its stake in Adobe by 7.6% during the 1st quarter. Johnson Investment Counsel Inc. now owns 156,164 shares of the software company's stock worth $59,894,000 after acquiring an additional 11,038 shares in the last quarter. Davidson Capital Management Inc. grew its holdings in shares of Adobe by 36,405.3% during the first quarter. Davidson Capital Management Inc. now owns 6,936 shares of the software company's stock worth $2,660,000 after purchasing an additional 6,917 shares during the last quarter. Finally, Steel Grove Capital Advisors LLC lifted its stake in Adobe by 27.0% in the first quarter. Steel Grove Capital Advisors LLC now owns 682 shares of the software company's stock valued at $262,000 after buying an additional 145 shares during the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

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.