Adobe (NASDAQ:ADBE) had its target price boosted by equities researchers at UBS Group from $540.00 to $577.00 in a research note issued to investors on Wednesday, FinViz reports. The firm currently has a "buy" rating on the software company's stock. UBS Group's target price would suggest a potential upside of 21.65% from the stock's previous close.
Several other equities analysts also recently weighed in on ADBE. Wells Fargo & Company raised their target price on shares of Adobe from $375.00 to $500.00 and gave the company an "equal weight" rating in a report on Wednesday. BofA Securities raised their target price on shares of Adobe from $440.00 to $570.00 and gave the company a "buy" rating in a report on Wednesday. Oppenheimer raised their price target on shares of Adobe from $430.00 to $550.00 and gave the stock an "outperform" rating in a research note on Wednesday. Morgan Stanley raised their price target on shares of Adobe from $450.00 to $560.00 and gave the stock an "overweight" rating in a research note on Monday. Finally, BidaskClub cut shares of Adobe from a "buy" rating to a "hold" rating in a research note on Wednesday, September 9th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and twenty-five have issued a buy rating to the stock. The stock presently has an average rating of "Buy" and an average target price of $494.06.
NASDAQ ADBE opened at $474.30 on Wednesday. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.38. Adobe has a 52 week low of $255.13 and a 52 week high of $536.88. The stock has a market capitalization of $227.51 billion, a PE ratio of 62.57, a price-to-earnings-growth ratio of 3.77 and a beta of 0.94. The firm has a 50 day moving average of $472.31 and a two-hundred day moving average of $397.17.
Adobe (NASDAQ:ADBE) last issued its earnings results on Tuesday, September 15th. The software company reported $2.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.41 by $0.16. The business had revenue of $3.23 billion during the quarter, compared to analysts' expectations of $3.16 billion. Adobe had a net margin of 30.72% and a return on equity of 35.53%. The company's revenue for the quarter was up 14.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.05 EPS. On average, equities research analysts expect that Adobe will post 8.05 earnings per share for the current fiscal year.
In related news, EVP Scott Belsky sold 600 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $492.02, for a total value of $295,212.00. Following the transaction, the executive vice president now owns 10,853 shares in the company, valued at $5,339,893.06. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Bryan Lamkin sold 13,094 shares of the firm's stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $427.66, for a total transaction of $5,599,780.04. The disclosure for this sale can be found here. Insiders sold 87,983 shares of company stock worth $39,560,726 in the last 90 days. 0.31% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently bought and sold shares of ADBE. Public Employees Retirement Association of Colorado raised its stake in shares of Adobe by 3.5% during the first quarter. Public Employees Retirement Association of Colorado now owns 91,987 shares of the software company's stock valued at $29,274,000 after purchasing an additional 3,143 shares during the period. Victory Capital Management Inc. raised its stake in shares of Adobe by 38.5% during the first quarter. Victory Capital Management Inc. now owns 477,561 shares of the software company's stock valued at $151,979,000 after purchasing an additional 132,684 shares during the period. Ontario Teachers Pension Plan Board purchased a new stake in shares of Adobe during the first quarter valued at approximately $1,226,000. Alberta Investment Management Corp raised its stake in shares of Adobe by 39.1% during the first quarter. Alberta Investment Management Corp now owns 12,100 shares of the software company's stock valued at $3,851,000 after purchasing an additional 3,400 shares during the period. Finally, United Asset Strategies Inc. purchased a new stake in shares of Adobe during the first quarter valued at approximately $482,000. Institutional investors own 84.03% of the company's stock.
Adobe Inc operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customer to download and access the latest versions of its creative products.
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7 Stocks That Will Help You Forget About the Fed
Normally when the Federal Reserve (i.e. the Fed) makes an announcement, the market reacts predictably. That’s due, in large part, to the nature of what the Fed normally announces. Will interest rates go up, down, or remain unchanged? And for their part, the markets have a pretty good idea what the Fed will do before they do it.
But the Fed’s announcement of August 26 was a little different. They talked briefly about interest rates (they’re staying really low for a long time). But they were more concerned about inflation. Well, the Fed is always concerned about inflation, but this time they really mean it. Basic economics says that low-interest rates should spur inflation.
However, the market has been defying conventional wisdom and the Fed is not getting the inflation they want. So the Fed has basically said that they’re letting inflation go rogue. If it goes above their target 2% rate, so be it. The Fed is done trying to hit a target.
At first, the markets cheered the news. Not only was the Fed not taking away the punch bowl, but they were also going to keep the low rate liquidity going for a long time!
But after a little while to digest things, investors are realizing they have to be grown-ups about this. And now investors are considering how to rebalance their portfolios for the remainder of 2020.
I don’t know about them, but if I were you I would target companies that have a high free cash flow (FCF). Whether it’s your personal finances or in evaluating a stock, cash flow is your friend.
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As institutional investors come back into the market, it’s time for you to reposition your portfolio for whatever comes next.
View the "7 Stocks That Will Help You Forget About the Fed".