Adobe (NASDAQ:ADBE) Shares Down 1.8% – Here’s Why

Shares of Adobe Inc. (NASDAQ:ADBE) dropped 1.8% during mid-day trading on Thursday . The company traded as low as $312.09 and last traded at $312.40. Approximately 3,714,656 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 3,918,665 shares. The stock had previously closed at $318.11.

Analysts Set New Price Targets

Several analysts have weighed in on ADBE shares. JMP Securities reaffirmed a “market perform” rating on shares of Adobe in a research note on Friday, September 12th. Royal Bank Of Canada cut their price objective on shares of Adobe from $480.00 to $430.00 and set an “outperform” rating on the stock in a research note on Monday, September 8th. Barclays set a $465.00 target price on shares of Adobe and gave the company an “overweight” rating in a research report on Wednesday, October 29th. Morgan Stanley downgraded shares of Adobe from an “overweight” rating to an “equal weight” rating and dropped their price target for the stock from $520.00 to $450.00 in a research report on Wednesday, September 24th. Finally, Melius cut shares of Adobe from a “hold” rating to a “sell” rating and set a $310.00 price objective for the company. in a report on Monday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $428.96.

Adobe Stock Performance

The company’s 50-day simple moving average is $344.71 and its 200-day simple moving average is $365.98. The stock has a market cap of $130.77 billion, a price-to-earnings ratio of 19.46, a price-to-earnings-growth ratio of 1.51 and a beta of 1.48. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE) last issued its earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.18 by $0.13. Adobe had a return on equity of 57.54% and a net margin of 30.01%.The business had revenue of $5.99 billion for the quarter, compared to analysts’ expectations of $5.91 billion. During the same period in the previous year, the firm posted $4.65 EPS. The company’s quarterly revenue was up 10.7% on a year-over-year basis. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. Analysts predict that Adobe Inc. will post 16.65 EPS for the current fiscal year.

Insider Transactions at Adobe

In other Adobe news, CAO Jillian Forusz sold 149 shares of the business’s stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $337.88, for a total transaction of $50,344.12. Following the sale, the chief accounting officer owned 3,426 shares in the company, valued at approximately $1,157,576.88. The trade was a 4.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.16% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. PFG Advisors boosted its position in shares of Adobe by 20.8% during the 1st quarter. PFG Advisors now owns 4,964 shares of the software company’s stock valued at $1,904,000 after acquiring an additional 855 shares in the last quarter. Lathrop Investment Management Co. lifted its stake in Adobe by 2.8% during the second quarter. Lathrop Investment Management Co. now owns 26,544 shares of the software company’s stock worth $10,269,000 after purchasing an additional 718 shares during the period. Mcdaniel Terry & Co. lifted its stake in Adobe by 2.8% during the second quarter. Mcdaniel Terry & Co. now owns 39,507 shares of the software company’s stock worth $15,284,000 after purchasing an additional 1,093 shares during the period. Jackson Thornton Wealth Management LLC acquired a new stake in Adobe during the second quarter valued at approximately $328,000. Finally, Koss Olinger Consulting LLC bought a new stake in shares of Adobe in the 1st quarter valued at approximately $305,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

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.