Adobe (ADBE) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Adobe (NASDAQ:ADBE) from a hold rating to a buy rating in a report published on Thursday morning. They currently have $286.00 price target on the software company’s stock.
According to Zacks, “Adobe’s creative products continue to drive its top-line growth. The company is currently benefiting from strong demand for its innovative solutions and growing subscriptions for its cloud application. Adobe has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has positive record of earnings surprises in recent quarters. Notably, the stock has outperformed the industry it belongs to on a year-to-date basis. However, lower end-market demand and exposure to Europe remain overhangs.”
Several other analysts have also issued reports on ADBE. ValuEngine lowered shares of Adobe from a buy rating to a hold rating in a research report on Tuesday, November 20th. Griffin Securities boosted their price target on shares of Adobe from $278.00 to $296.00 and gave the company a buy rating in a research report on Friday, September 14th. BidaskClub raised shares of Adobe from a buy rating to a strong-buy rating in a research report on Thursday, September 13th. Bank of America reaffirmed a buy rating and set a $300.00 target price on shares of Adobe in a report on Wednesday, September 12th. Finally, Piper Jaffray Companies reaffirmed an overweight rating and set a $290.00 target price on shares of Adobe in a report on Friday, September 14th. They noted that the move was a valuation call. Ten equities research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company’s stock. The stock has a consensus rating of Buy and an average price target of $271.90.
Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, September 13th. The software company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.69 by $0.04. Adobe had a net margin of 28.16% and a return on equity of 29.51%. The company had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.25 billion. During the same quarter in the previous year, the firm posted $1.10 earnings per share. The company’s quarterly revenue was up 24.4% compared to the same quarter last year. Equities analysts expect that Adobe will post 5.66 EPS for the current year.
In other news, EVP Bradley Rencher sold 12,000 shares of the company’s stock in a transaction on Thursday, November 1st. The shares were sold at an average price of $245.30, for a total value of $2,943,600.00. Following the completion of the sale, the executive vice president now owns 68,071 shares of the company’s stock, valued at approximately $16,697,816.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Ann Lewnes sold 2,910 shares of the company’s stock in a transaction on Wednesday, October 17th. The shares were sold at an average price of $261.21, for a total transaction of $760,121.10. Following the completion of the sale, the executive vice president now directly owns 55,647 shares of the company’s stock, valued at approximately $14,535,552.87. The disclosure for this sale can be found here. Insiders sold a total of 20,806 shares of company stock valued at $5,167,142 in the last ninety days. 0.33% of the stock is owned by corporate insiders.
Several institutional investors have recently made changes to their positions in the company. Cognios Capital LLC boosted its position in Adobe by 18.1% during the 2nd quarter. Cognios Capital LLC now owns 7,472 shares of the software company’s stock valued at $1,821,000 after buying an additional 1,144 shares during the period. Victory Capital Management Inc. boosted its position in Adobe by 0.6% during the 2nd quarter. Victory Capital Management Inc. now owns 81,573 shares of the software company’s stock valued at $19,888,000 after buying an additional 506 shares during the period. HC Financial Advisors Inc. purchased a new stake in Adobe during the 2nd quarter valued at $1,290,000. Leisure Capital Management boosted its position in Adobe by 84.2% during the 2nd quarter. Leisure Capital Management now owns 2,291 shares of the software company’s stock valued at $559,000 after buying an additional 1,047 shares during the period. Finally, West Branch Capital LLC purchased a new stake in Adobe during the 2nd quarter valued at $207,000. 85.02% of the stock is owned by 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 customers to download and install the latest versions of its creative products.
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