Avalon Trust Co Lowers Stake in Adobe Inc. (NASDAQ:ADBE)

Key Points

• Avalon Trust Co reduced its stake in Adobe Inc. by 21.5%, now holding 37,843 shares valued at approximately $14.5 million.
• Several hedge funds significantly increased their positions in Adobe, with GAMMA Investing LLC raising its stake by an astonishing 46,806.6%.
• Adobe's stock currently has an average rating of "Moderate Buy" with a price target around $473.88, despite a recent price drop of 2.8%.

Avalon Trust Co lowered its stake in Adobe Inc. (NASDAQ:ADBE - Free Report) by 21.5% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 37,843 shares of the software company's stock after selling 10,365 shares during the period. Adobe accounts for 1.2% of Avalon Trust Co's holdings, making the stock its 25th largest holding. Avalon Trust Co's holdings in Adobe were worth $14,514,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp raised its stake in Adobe by 14.4% during the first quarter. Bank of New York Mellon Corp now owns 6,530,611 shares of the software company's stock worth $2,504,685,000 after buying an additional 821,293 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Adobe by 12.7% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,341,695 shares of the software company's stock valued at $2,375,345,000 after purchasing an additional 600,146 shares in the last quarter. Northern Trust Corp increased its stake in Adobe by 14.5% in the fourth quarter. Northern Trust Corp now owns 5,314,215 shares of the software company's stock valued at $2,363,125,000 after purchasing an additional 672,919 shares in the last quarter. Edgewood Management LLC increased its stake in Adobe by 20.7% in the fourth quarter. Edgewood Management LLC now owns 4,059,119 shares of the software company's stock valued at $1,805,009,000 after purchasing an additional 696,172 shares in the last quarter. Finally, Deutsche Bank AG increased its stake in Adobe by 4.0% in the fourth quarter. Deutsche Bank AG now owns 3,496,967 shares of the software company's stock valued at $1,555,031,000 after purchasing an additional 133,556 shares in the last quarter. Institutional investors and hedge funds own 81.79% of the company's stock.

Adobe Price Performance

Shares of NASDAQ:ADBE traded down $8.95 during trading on Monday, reaching $338.85. The company had a trading volume of 6,439,554 shares, compared to its average volume of 3,284,436. Adobe Inc. has a 12 month low of $332.01 and a 12 month high of $587.75. The stock has a market capitalization of $143.74 billion, a P/E ratio of 21.68, a price-to-earnings-growth ratio of 1.65 and a beta of 1.51. The company has a fifty day moving average of $385.72 and a two-hundred day moving average of $398.74. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.54.

Adobe (NASDAQ:ADBE - Get Free Report) last announced 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. The business had revenue of $5.87 billion during the quarter, compared to analysts' expectations of $5.80 billion. Adobe had a net margin of 30.39% and a return on equity of 53.68%. The firm's revenue for the quarter was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $4.48 EPS. Equities research analysts forecast that Adobe Inc. will post 16.65 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $480.00 price target on shares of Adobe in a research note on Thursday, June 5th. Morgan Stanley decreased their target price on shares of Adobe from $600.00 to $510.00 and set an "overweight" rating for the company in a research report on Wednesday, April 16th. Piper Sandler decreased their target price on shares of Adobe from $600.00 to $500.00 and set an "overweight" rating for the company in a research report on Wednesday, April 23rd. Bank of America boosted their target price on shares of Adobe from $424.00 to $475.00 and gave the stock a "buy" rating in a research report on Friday, June 13th. Finally, Robert W. Baird boosted their price target on shares of Adobe from $410.00 to $425.00 and gave the stock a "neutral" rating in a report on Monday, June 16th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, sixteen have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, Adobe presently has an average rating of "Moderate Buy" and a consensus target price of $473.88.

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.