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Adobe Sees Unusually Large Options Volume (NASDAQ:ADBE)

Last updated on Wednesday, September 16, 2020 | 2020 MarketBeat

Adobe Inc (NASDAQ:ADBE) was the recipient of some unusual options trading activity on Wednesday. Traders bought 42,914 call options on the company. This represents an increase of approximately 50% compared to the typical daily volume of 28,609 call options.

A number of research analysts recently weighed in on the stock. BMO Capital Markets increased their price objective on shares of Adobe from $440.00 to $535.00 and gave the company an "outperform" rating in a research report on Monday. Citigroup lowered their price objective on shares of Adobe from $530.00 to $523.00 and set a "neutral" rating on the stock in a research report on Wednesday. Royal Bank of Canada increased their price objective on shares of Adobe from $550.00 to $570.00 and gave the company an "outperform" rating in a research report on Wednesday. Zacks Investment Research downgraded shares of Adobe from a "hold" rating to a "sell" rating and set a $421.00 price objective on the stock. in a research report on Tuesday, June 16th. Finally, Argus increased their price objective on shares of Adobe from $368.00 to $474.00 and gave the company a "buy" rating in a research report on Monday, June 15th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and twenty-five have given a buy rating to the stock. Adobe has an average rating of "Buy" and a consensus price target of $487.55.

In other news, EVP Gloria Chen sold 497 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $472.12, for a total transaction of $234,643.64. Following the sale, the executive vice president now owns 7,365 shares in the company, valued at $3,477,163.80. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Shantanu Narayen sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $432.68, for a total transaction of $4,326,800.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 87,383 shares of company stock worth $39,265,514. Corporate insiders own 0.31% of the company's stock.

Several large investors have recently added to or reduced their stakes in ADBE. Aviance Capital Partners LLC raised its position in shares of Adobe by 191.4% during the 2nd quarter. Aviance Capital Partners LLC now owns 25,888 shares of the software company's stock valued at $11,269,000 after acquiring an additional 17,004 shares in the last quarter. Beaumont Financial Partners LLC grew its stake in shares of Adobe by 3.6% in the second quarter. Beaumont Financial Partners LLC now owns 1,470 shares of the software company's stock worth $640,000 after purchasing an additional 51 shares in the last quarter. Westover Capital Advisors LLC boosted its stake in Adobe by 37.3% during the second quarter. Westover Capital Advisors LLC now owns 5,725 shares of the software company's stock valued at $2,492,000 after buying an additional 1,556 shares in the last quarter. Wexford Capital LP bought a new position in Adobe during the first quarter valued at about $85,000. Finally, Wendell David Associates Inc. bought a new position in Adobe during the second quarter valued at about $1,711,000. 84.03% of the stock is owned by institutional investors and hedge funds.

Adobe stock traded down $14.67 during midday trading on Wednesday, reaching $483.00. The company's stock had a trading volume of 103,663 shares, compared to its average volume of 3,353,773. Adobe has a fifty-two week low of $255.13 and a fifty-two week high of $536.88. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.29 and a current ratio of 1.29. The stock's 50 day simple moving average is $470.05 and its 200 day simple moving average is $395.83. The firm has a market capitalization of $233.07 billion, a PE ratio of 66.62, a P/E/G ratio of 3.77 and a beta of 0.94.

Adobe (NASDAQ:ADBE) last released its earnings results on Tuesday, September 15th. The software company reported $2.57 EPS for the quarter, beating analysts' consensus estimates of $2.41 by $0.16. The company had revenue of $3.23 billion during the quarter, compared to the consensus estimate of $3.16 billion. Adobe had a return on equity of 35.53% and a net margin of 30.72%. Adobe's quarterly revenue was up 14.0% compared to the same quarter last year. During the same quarter last year, the company earned $2.05 earnings per share. Equities analysts predict that Adobe will post 8.05 earnings per share for the current year.

Adobe Company Profile

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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