Primecap Management Co. CA Lowers Stake in Adobe Inc. (NASDAQ:ADBE)

Key Points

• Primecap Management Co. CA has decreased its holdings in Adobe Inc. by 1.2%, now owning 5,421,591 shares, which represents 1.7% of its total investments.
• Other institutional investors, including Vanguard Group Inc. and Goldman Sachs Group Inc., have increased their stakes in Adobe, indicating a mixed sentiment among hedge funds.
• Recent analyst ratings for Adobe vary, with a consensus rating of "Moderate Buy" and a target price of $473.88, reflecting optimism tempered by some neutral and sell ratings.

Primecap Management Co. CA decreased its position in Adobe Inc. (NASDAQ:ADBE - Free Report) by 1.2% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 5,421,591 shares of the software company's stock after selling 65,810 shares during the period. Adobe makes up 1.7% of Primecap Management Co. CA's holdings, making the stock its 15th biggest holding. Primecap Management Co. CA owned about 1.27% of Adobe worth $2,079,343,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in ADBE. Siemens Fonds Invest GmbH raised its holdings in shares of Adobe by 252.9% during the fourth quarter. Siemens Fonds Invest GmbH now owns 55,658 shares of the software company's stock valued at $25,000 after purchasing an additional 39,888 shares during the period. Barnes Dennig Private Wealth Management LLC acquired a new position in shares of Adobe during the first quarter valued at about $26,000. SWAN Capital LLC acquired a new position in shares of Adobe during the fourth quarter valued at about $28,000. Copia Wealth Management bought a new stake in shares of Adobe during the fourth quarter worth about $28,000. Finally, HHM Wealth Advisors LLC bought a new stake in shares of Adobe during the first quarter worth about $30,000. Institutional investors and hedge funds own 81.79% of the company's stock.

Adobe Price Performance

NASDAQ ADBE traded down $7.35 on Thursday, hitting $338.27. The stock had a trading volume of 4,658,591 shares, compared to its average volume of 3,370,717. Adobe Inc. has a 52-week low of $332.01 and a 52-week high of $587.75. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.99 and a current ratio of 0.99. The company has a market capitalization of $143.49 billion, a price-to-earnings ratio of 21.64, a price-to-earnings-growth ratio of 1.64 and a beta of 1.51. The firm has a 50-day moving average of $380.02 and a 200-day moving average of $396.70.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $5.80 billion. During the same quarter last year, the company posted $4.48 EPS. The business's quarterly revenue was up 10.6% on a year-over-year basis. Equities analysts expect that Adobe Inc. will post 16.65 EPS for the current year.

Analysts Set New Price Targets

ADBE has been the subject of several recent research reports. BMO Capital Markets reissued an "outperform" rating and set a $450.00 target price on shares of Adobe in a research report on Friday, June 13th. Redburn Atlantic downgraded shares of Adobe from a "hold" rating to a "strong sell" rating and decreased their target price for the stock from $420.00 to $280.00 in a research report on Wednesday, July 2nd. 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. Wells Fargo & Company reissued an "overweight" rating and set a $470.00 target price (up from $430.00) on shares of Adobe in a research report on Friday, June 13th. Finally, Oppenheimer decreased their target price on shares of Adobe from $530.00 to $500.00 and set an "outperform" rating for the company in a research report on Friday, June 13th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $473.88.

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.