Southpoint Capital Advisors LP Acquires 75,000 Shares of Adobe Inc. $ADBE

Key Points

• Southpoint Capital Advisors LP has increased its stake in Adobe Inc. by 23.1%, now holding 400,000 shares worth approximately $153.4 million.
• Adobe reported $5.06 earnings per share for the last quarter, surpassing estimates, with revenues of $5.87 billion, a year-over-year increase of 10.6%.
• Institutional investors own about 81.79% of Adobe's stock, reflecting a strong confidence in the company among major financial entities.

Southpoint Capital Advisors LP lifted its holdings in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) by 23.1% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 400,000 shares of the software company's stock after purchasing an additional 75,000 shares during the period. Adobe accounts for about 3.6% of Southpoint Capital Advisors LP's portfolio, making the stock its 10th largest position. Southpoint Capital Advisors LP owned 0.09% of Adobe worth $153,412,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in ADBE. Garde Capital Inc. acquired a new stake in Adobe in the 1st quarter valued at about $34,000. PFG Advisors increased its holdings in shares of Adobe by 20.8% in the first quarter. PFG Advisors now owns 4,964 shares of the software company's stock valued at $1,904,000 after purchasing an additional 855 shares in the last quarter. Krane Funds Advisors LLC increased its holdings in shares of Adobe by 110.4% in the first quarter. Krane Funds Advisors LLC now owns 1,391 shares of the software company's stock valued at $533,000 after purchasing an additional 730 shares in the last quarter. Financial Counselors Inc. raised its position in Adobe by 9.2% in the 1st quarter. Financial Counselors Inc. now owns 62,851 shares of the software company's stock worth $24,105,000 after purchasing an additional 5,298 shares during the last quarter. Finally, Koss Olinger Consulting LLC acquired a new position in Adobe during the 1st quarter worth $305,000. 81.79% of the stock is owned by institutional investors.

Adobe Stock Up 0.8%

Adobe stock opened at $356.70 on Tuesday. The firm has a market capitalization of $151.31 billion, a price-to-earnings ratio of 22.82, a PEG ratio of 1.69 and a beta of 1.48. The company's 50 day simple moving average is $363.46 and its 200 day simple moving average is $385.24. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.99 and a quick ratio of 0.99. Adobe Inc. has a fifty-two week low of $330.04 and a fifty-two week high of $587.75.

Adobe (NASDAQ:ADBE - Get Free Report) last posted its earnings results on Thursday, June 12th. The software company reported $5.06 earnings per share for the quarter, topping the consensus estimate of $4.97 by $0.09. The company had revenue of $5.87 billion for the quarter, compared to analyst estimates of $5.80 billion. Adobe had a net margin of 30.39% and a return on equity of 53.68%. The business's revenue for the quarter was up 10.6% compared to the same quarter last year. During the same period last year, the business posted $4.48 earnings per share. Adobe has set its Q3 2025 guidance at 5.150-5.200 EPS. FY 2025 guidance at 20.500-20.700 EPS. As a group, sell-side analysts anticipate that Adobe Inc. will post 16.65 EPS for the current year.

Analyst Ratings Changes

A number of research firms have recently weighed in on ADBE. Oppenheimer dropped their target price on Adobe from $530.00 to $500.00 and set an "outperform" rating for the company in a research report on Friday, June 13th. Royal Bank Of Canada reissued an "outperform" rating and set a $480.00 price objective on shares of Adobe in a report on Thursday, June 5th. Wells Fargo & Company restated 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. Wall Street Zen cut shares of Adobe from a "buy" rating to a "hold" rating in a research report on Friday, August 22nd. Finally, Citigroup dropped their price target on shares of Adobe from $465.00 to $450.00 and set a "neutral" rating for the company in a research note on Monday, June 16th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $459.52.

Adobe 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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