Adobe (NASDAQ:ADBE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Adobe’s lower end-market demand and exposure to Europe remain overhangs. Also, higher expenses incurred on acquisitions will likely impact its bottom line. However, the company should continue to benefit from Marketo acquisition and strong demand for its creative products. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. Notably, the stock has outperformed the industry it belongs to in the past one year.”

Other research analysts have also issued research reports about the stock. Wedbush began coverage on shares of Adobe in a report on Thursday, October 18th. They set a “neutral” rating and a $270.00 price target for the company. Pivotal Research restated a “hold” rating and set a $252.00 price target (down previously from $254.00) on shares of Adobe in a report on Friday, December 14th. ValuEngine upgraded shares of Adobe from a “hold” rating to a “buy” rating in a report on Tuesday, January 15th. Rosenblatt Securities restated a “buy” rating and set a $280.00 price target on shares of Adobe in a report on Sunday, December 16th. Finally, Nomura set a $315.00 price target on shares of Adobe and gave the stock a “buy” rating in a report on Friday, December 14th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and twenty have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $284.62.

NASDAQ:ADBE opened at $260.23 on Tuesday. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.13 and a current ratio of 1.13. Adobe has a one year low of $191.95 and a one year high of $277.61. The company has a market cap of $126.75 billion, a P/E ratio of 46.89, a price-to-earnings-growth ratio of 2.52 and a beta of 1.15.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, December 13th. The software company reported $1.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.88 by ($0.05). Adobe had a return on equity of 31.19% and a net margin of 28.69%. The firm had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter in the previous year, the business posted $1.26 EPS. The firm’s revenue for the quarter was up 20.6% compared to the same quarter last year. On average, analysts expect that Adobe will post 6.21 earnings per share for the current fiscal year.

In other Adobe news, EVP Bradley Rencher sold 30,000 shares of the business’s stock in a transaction on Thursday, January 31st. The shares were sold at an average price of $246.46, for a total transaction of $7,393,800.00. Following the completion of the sale, the executive vice president now owns 42,340 shares in the company, valued at approximately $10,435,116.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Ann Lewnes sold 2,692 shares of the business’s stock in a transaction on Wednesday, December 19th. The shares were sold at an average price of $226.05, for a total transaction of $608,526.60. The disclosure for this sale can be found here. Insiders have sold a total of 282,299 shares of company stock valued at $68,899,256 in the last 90 days. 0.33% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Oregon Public Employees Retirement Fund boosted its holdings in Adobe by 24,198.5% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 38,660,570 shares of the software company’s stock worth $171,000 after acquiring an additional 38,501,463 shares during the last quarter. FMR LLC boosted its holdings in shares of Adobe by 0.5% in the 3rd quarter. FMR LLC now owns 37,486,540 shares of the software company’s stock worth $10,119,492,000 after buying an additional 178,011 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of Adobe by 1.0% in the 3rd quarter. Vanguard Group Inc. now owns 37,046,965 shares of the software company’s stock worth $10,000,828,000 after buying an additional 349,019 shares during the last quarter. Vanguard Group Inc boosted its holdings in shares of Adobe by 1.0% in the 3rd quarter. Vanguard Group Inc now owns 37,046,965 shares of the software company’s stock worth $10,000,828,000 after buying an additional 349,019 shares during the last quarter. Finally, BlackRock Inc. boosted its holdings in shares of Adobe by 0.6% in the 3rd quarter. BlackRock Inc. now owns 33,974,587 shares of the software company’s stock worth $9,171,442,000 after buying an additional 191,786 shares during the last quarter. 92.64% of the stock is currently owned by hedge funds and other institutional investors.

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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