Adobe (NASDAQ:ADBE) Trading 1% Higher – Should You Buy?

Adobe Inc. (NASDAQ:ADBE)’s stock price traded up 1% on Monday . The stock traded as high as $436.41 and last traded at $434.78. 954,845 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 2,961,918 shares. The stock had previously closed at $430.57.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Barclays lowered their price objective on shares of Adobe from $675.00 to $645.00 and set an “overweight” rating on the stock in a research note on Thursday, December 12th. Bank of America decreased their target price on shares of Adobe from $640.00 to $605.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. Mizuho decreased their target price on shares of Adobe from $640.00 to $620.00 and set an “outperform” rating on the stock in a research note on Thursday, December 12th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Adobe from $650.00 to $600.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. Finally, Jefferies Financial Group decreased their target price on shares of Adobe from $700.00 to $650.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating, seventeen have given a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, Adobe has a consensus rating of “Moderate Buy” and an average price target of $582.96.

Adobe Price Performance

The company has a market capitalization of $188.42 billion, a PE ratio of 34.52, a price-to-earnings-growth ratio of 2.51 and a beta of 1.31. The firm’s 50 day simple moving average is $490.31 and its 200 day simple moving average is $520.78. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 0.28.

Adobe (NASDAQ:ADBE) last released its earnings results on Wednesday, December 11th. The software company reported $4.81 earnings per share for the quarter, topping the consensus estimate of $4.67 by $0.14. Adobe had a return on equity of 45.22% and a net margin of 25.85%. The business had revenue of $5.61 billion during the quarter, compared to the consensus estimate of $5.54 billion. During the same period last year, the company earned $3.52 earnings per share. The business’s revenue for the quarter was up 11.1% compared to the same quarter last year. As a group, research analysts anticipate that Adobe Inc. will post 16.73 EPS for the current fiscal year.

Insider Activity at Adobe

In related news, EVP Scott Belsky sold 1,530 shares of Adobe stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $513.82, for a total value of $786,144.60. Following the completion of the sale, the executive vice president now directly owns 18,831 shares in the company, valued at $9,675,744.42. The trade was a 7.51 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Amy Banse sold 606 shares of Adobe stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $550.00, for a total value of $333,300.00. Following the completion of the sale, the director now owns 32,929 shares of the company’s stock, valued at $18,110,950. The trade was a 1.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 3,293 shares of company stock worth $1,679,809 over the last three months. 0.15% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Adobe

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADBE. Private Advisor Group LLC grew its stake in Adobe by 11.5% in the second quarter. Private Advisor Group LLC now owns 25,577 shares of the software company’s stock valued at $14,209,000 after purchasing an additional 2,631 shares during the last quarter. Savant Capital LLC grew its stake in shares of Adobe by 2.7% during the second quarter. Savant Capital LLC now owns 6,984 shares of the software company’s stock worth $3,880,000 after acquiring an additional 186 shares during the last quarter. Advisor OS LLC grew its stake in shares of Adobe by 3.8% during the second quarter. Advisor OS LLC now owns 1,374 shares of the software company’s stock worth $763,000 after acquiring an additional 50 shares during the last quarter. Umpqua Bank grew its stake in shares of Adobe by 13.8% during the second quarter. Umpqua Bank now owns 2,939 shares of the software company’s stock worth $1,633,000 after acquiring an additional 356 shares during the last quarter. Finally, Strategic Financial Concepts LLC purchased a new stake in shares of Adobe during the second quarter worth about $40,417,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

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.