Kettle Hill Capital Management LLC Makes New $13.50 Million Investment in Adobe Inc. $ADBE

Key Points

• Kettle Hill Capital Management LLC has acquired a new stake in Adobe Inc., purchasing 35,208 shares worth approximately $13.5 million, making Adobe its 10th largest position.
• Adobe reported earnings of $5.06 per share for the last quarter, exceeding analysts' estimates, with revenue increasing by 10.6% year-over-year.
• Wall Street analysts generally maintain a positive outlook on Adobe, with a consensus price target around $459.52 and numerous firms issuing buy ratings.

Kettle Hill Capital Management LLC bought a new position in Adobe Inc. (NASDAQ:ADBE - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 35,208 shares of the software company's stock, valued at approximately $13,503,000. Adobe comprises about 3.7% of Kettle Hill Capital Management LLC's investment portfolio, making the stock its 10th largest position.

Several other institutional investors and hedge funds have also bought and sold shares of ADBE. GAMMA Investing LLC lifted its position in shares of Adobe by 46,806.6% during the 1st quarter. GAMMA Investing LLC now owns 2,990,767 shares of the software company's stock valued at $1,147,049,000 after buying an additional 2,984,391 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Adobe by 68.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,575,792 shares of the software company's stock worth $1,754,954,000 after acquiring an additional 1,856,544 shares during the last quarter. Nuveen LLC bought a new stake in Adobe in the 1st quarter worth approximately $607,443,000. OVERSEA CHINESE BANKING Corp Ltd increased its stake in Adobe by 1,482.7% in the 1st quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 1,298,389 shares of the software company's stock worth $498,000 after acquiring an additional 1,216,351 shares during the last quarter. Finally, Amundi increased its stake in Adobe by 24.7% in the 1st quarter. Amundi now owns 4,848,521 shares of the software company's stock worth $1,782,642,000 after acquiring an additional 961,895 shares during the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on ADBE shares. Wall Street Zen raised Adobe from a "hold" rating to a "buy" rating in a research report on Friday. UBS Group cut their target price on Adobe from $430.00 to $400.00 and set a "neutral" rating on the stock in a research report on Friday, August 29th. Mizuho cut their target price on Adobe from $530.00 to $460.00 and set an "outperform" rating on the stock in a research report on Monday. Stifel Nicolaus cut their target price on Adobe from $525.00 to $480.00 and set a "buy" rating on the stock in a research report on Friday, June 13th. Finally, Barclays cut their price objective on Adobe from $567.00 to $460.00 and set an "overweight" rating on the stock in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $446.74.

Adobe Stock Performance

Shares of ADBE traded down $4.60 during mid-day trading on Tuesday, reaching $354.06. The company had a trading volume of 4,304,958 shares, compared to its average volume of 3,773,515. Adobe Inc. 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 stock has a market capitalization of $150.19 billion, a P/E ratio of 22.65, a PEG ratio of 1.65 and a beta of 1.48. The stock has a 50 day moving average of $359.83 and a two-hundred day moving average of $381.50.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its 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. Adobe had a return on equity of 53.68% and a net margin of 30.39%.The firm had revenue of $5.87 billion for the quarter, compared to the consensus estimate of $5.80 billion. During the same quarter in the prior year, the business earned $4.48 earnings per share. The company's revenue was up 10.6% compared to the same quarter last year. Adobe has set its Q3 2025 guidance at 5.150-5.200 EPS. FY 2025 guidance at 20.500-20.700 EPS. On average, analysts expect that Adobe Inc. will post 16.65 earnings per share for the current year.

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.