Varenne Capital Partners Invests $19.13 Million in Adobe Inc. (NASDAQ:ADBE)

Key Points

• Varenne Capital Partners has acquired nearly 50,000 shares of Adobe Inc., amounting to approximately $19.13 million and making it the firm's 6th largest position.
• Adobe's stock has seen mixed ratings from analysts, with some lowering their price targets while others maintain a positive outlook, resulting in a consensus target price of $467.58.
• Adobe reported strong quarterly earnings with an EPS of $5.06, surpassing estimates and showing 10.6% year-over-year revenue growth.

Varenne Capital Partners purchased a new position in shares of Adobe Inc. (NASDAQ:ADBE - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 49,879 shares of the software company's stock, valued at approximately $19,130,000. Adobe accounts for 6.9% of Varenne Capital Partners' holdings, making the stock its 6th biggest position.

A number of other institutional investors have also added to or reduced their stakes in the company. Cadence Bank raised its stake in Adobe by 0.5% during the 4th quarter. Cadence Bank now owns 4,883 shares of the software company's stock worth $2,171,000 after buying an additional 22 shares during the period. Eagle Strategies LLC raised its stake in Adobe by 1.5% during the 4th quarter. Eagle Strategies LLC now owns 1,465 shares of the software company's stock worth $651,000 after buying an additional 22 shares during the period. RB Capital Management LLC raised its stake in Adobe by 0.4% during the 4th quarter. RB Capital Management LLC now owns 4,944 shares of the software company's stock worth $2,198,000 after buying an additional 22 shares during the period. Orin Green Financial LLC raised its stake in Adobe by 3.8% during the 4th quarter. Orin Green Financial LLC now owns 621 shares of the software company's stock worth $276,000 after buying an additional 23 shares during the period. Finally, Diligent Investors LLC raised its stake in Adobe by 1.2% during the 4th quarter. Diligent Investors LLC now owns 2,160 shares of the software company's stock worth $961,000 after buying an additional 26 shares during the period. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe Stock Performance

NASDAQ ADBE traded down $2.49 on Thursday, hitting $348.58. 3,742,921 shares of the stock traded hands, compared to its average volume of 3,564,123. The business's fifty day moving average is $373.08 and its two-hundred day moving average is $393.45. Adobe Inc. has a 12 month low of $330.04 and a 12 month high of $587.75. The firm has a market capitalization of $147.87 billion, a price-to-earnings ratio of 22.30, a PEG ratio of 1.66 and a beta of 1.51. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.99 and a current ratio of 0.99.

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

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on ADBE shares. Rothschild & Co Redburn downgraded Adobe from a "neutral" rating to a "sell" rating and set a $280.00 price target on the stock. in a research note on Wednesday, July 2nd. Evercore ISI reissued an "outperform" rating and issued a $475.00 price objective on shares of Adobe in a research note on Friday, June 13th. Citigroup lowered their price objective on Adobe from $465.00 to $450.00 and set a "neutral" rating for the company in a research note on Monday, June 16th. Phillip Securities raised Adobe from a "moderate sell" rating to a "strong-buy" rating in a research note on Monday, June 16th. Finally, Piper Sandler lowered their price objective on Adobe from $600.00 to $500.00 and set an "overweight" rating for the company in a research note on Wednesday, April 23rd. Four research analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Adobe has a consensus rating of "Moderate Buy" and an average target price of $467.58.

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.