Capital International Investors Cuts Stock Holdings in Adobe Inc. (NASDAQ:ADBE)

Capital International Investors reduced its position in shares of Adobe Inc. (NASDAQ:ADBE) by 11.8% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 712,477 shares of the software company’s stock after selling 95,687 shares during the period. Capital International Investors’ holdings in Adobe were worth $359,516,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Norges Bank purchased a new position in Adobe in the fourth quarter valued at about $3,277,785,000. Wellington Management Group LLP increased its holdings in Adobe by 1,213.5% in the fourth quarter. Wellington Management Group LLP now owns 2,024,438 shares of the software company’s stock valued at $1,207,780,000 after buying an additional 1,870,307 shares in the last quarter. International Assets Investment Management LLC purchased a new position in shares of Adobe during the 4th quarter worth approximately $875,592,000. Price T Rowe Associates Inc. MD increased its stake in shares of Adobe by 10.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,497,332 shares of the software company’s stock worth $3,876,309,000 after purchasing an additional 590,533 shares in the last quarter. Finally, Vanguard Group Inc. increased its stake in shares of Adobe by 1.0% during the 1st quarter. Vanguard Group Inc. now owns 40,648,975 shares of the software company’s stock worth $20,511,473,000 after purchasing an additional 382,803 shares in the last quarter. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe Stock Up 1.9 %

Shares of ADBE traded up $10.29 during midday trading on Friday, hitting $542.44. The company had a trading volume of 2,089,566 shares, compared to its average volume of 3,431,273. The company’s 50 day moving average price is $516.90 and its 200 day moving average price is $530.77. The stock has a market cap of $240.52 billion, a price-to-earnings ratio of 48.74, a PEG ratio of 2.77 and a beta of 1.30. Adobe Inc. has a 52 week low of $433.97 and a 52 week high of $638.25. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.28.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, June 13th. The software company reported $4.48 earnings per share for the quarter, topping the consensus estimate of $4.39 by $0.09. The company had revenue of $5.31 billion during the quarter, compared to the consensus estimate of $5.29 billion. Adobe had a net margin of 24.86% and a return on equity of 40.67%. The company’s revenue was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.04 EPS. On average, equities research analysts predict that Adobe Inc. will post 14.69 EPS for the current year.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the stock. StockNews.com cut shares of Adobe from a “buy” rating to a “hold” rating in a research note on Friday, July 12th. Piper Sandler decreased their target price on shares of Adobe from $700.00 to $635.00 and set an “overweight” rating on the stock in a research report on Friday, July 12th. Melius Research restated a “hold” rating and set a $510.00 target price on shares of Adobe in a research report on Monday, June 10th. Royal Bank of Canada restated an “outperform” rating and set a $600.00 target price on shares of Adobe in a research report on Friday, June 14th. Finally, Piper Sandler Companies restated an “overweight” rating and set a $635.00 target price on shares of Adobe in a research report on Friday, July 12th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and twenty-one have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Adobe presently has an average rating of “Moderate Buy” and an average price target of $603.33.

Insider Activity at Adobe

In related news, CAO Mark S. Garfield sold 97 shares of the business’s stock in a transaction dated Thursday, July 25th. The shares were sold at an average price of $537.00, for a total transaction of $52,089.00. Following the completion of the sale, the chief accounting officer now owns 2,797 shares of the company’s stock, valued at approximately $1,501,989. The sale was disclosed in a legal filing with the SEC, which is available through this link. In other Adobe news, CEO Shantanu Narayen sold 25,000 shares of the business’s stock in a transaction dated Thursday, June 27th. The shares were sold at an average price of $544.11, for a total transaction of $13,602,750.00. Following the completion of the transaction, the chief executive officer now directly owns 379,660 shares of the company’s stock, valued at approximately $206,576,802.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Mark S. Garfield sold 97 shares of the business’s stock in a transaction dated Thursday, July 25th. The shares were sold at an average price of $537.00, for a total transaction of $52,089.00. Following the transaction, the chief accounting officer now directly owns 2,797 shares of the company’s stock, valued at $1,501,989. The disclosure for this sale can be found here. Insiders sold a total of 30,236 shares of company stock valued at $16,281,053 in the last quarter. Insiders own 0.15% of the company’s stock.

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.