Adobe (NASDAQ:ADBE) Updates Q2 Earnings Guidance

Adobe (NASDAQ:ADBE) issued an update on its second quarter earnings guidance on Thursday morning. The company provided EPS guidance of $4.35-4.40 for the period, compared to the consensus EPS estimate of $4.38. The company issued revenue guidance of $5.25-5.30 billion, compared to the consensus revenue estimate of $5.30 billion.

Analyst Upgrades and Downgrades

Several research firms have issued reports on ADBE. BMO Capital Markets increased their target price on Adobe from $670.00 to $690.00 and gave the stock an outperform rating in a research report on Friday, December 8th. Piper Sandler lifted their target price on Adobe from $650.00 to $705.00 and gave the company an overweight rating in a report on Tuesday, January 2nd. Citigroup increased their price target on shares of Adobe from $610.00 to $675.00 and gave the stock a neutral rating in a report on Tuesday, December 12th. BNP Paribas cut shares of Adobe from a neutral rating to an underperform rating and set a $499.00 price objective for the company. in a research note on Thursday, January 18th. Finally, KGI Securities raised shares of Adobe from a neutral rating to an outperform rating and set a $730.00 target price on the stock in a report on Monday, December 4th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and twenty-one have assigned a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $613.14.

Adobe Trading Down 0.5 %

ADBE stock traded down $3.10 during trading on Thursday, hitting $570.45. 5,203,242 shares of the company traded hands, compared to its average volume of 3,105,580. The company has a 50-day moving average of $586.09 and a 200-day moving average of $573.91. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.34 and a current ratio of 1.34. Adobe has a 1 year low of $328.17 and a 1 year high of $638.25. The firm has a market capitalization of $258.16 billion, a PE ratio of 48.56, a P/E/G ratio of 2.98 and a beta of 1.29.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Wednesday, December 13th. The software company reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.13 by $0.14. Adobe had a return on equity of 38.30% and a net margin of 27.97%. The firm had revenue of $5.05 billion during the quarter, compared to analyst estimates of $5.01 billion. During the same quarter in the prior year, the firm posted $2.78 earnings per share. The business’s quarterly revenue was up 11.6% compared to the same quarter last year. Analysts predict that Adobe will post 14.46 earnings per share for the current fiscal year.

Insider Buying and Selling at Adobe

In related news, insider David Wadhwani sold 6,099 shares of the business’s stock in a transaction dated Wednesday, January 3rd. The stock was sold at an average price of $571.77, for a total transaction of $3,487,225.23. Following the transaction, the insider now owns 7,614 shares in the company, valued at approximately $4,353,456.78. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other Adobe news, insider David Wadhwani sold 6,099 shares of the company’s stock in a transaction on Wednesday, January 3rd. The shares were sold at an average price of $571.77, for a total value of $3,487,225.23. Following the completion of the transaction, the insider now directly owns 7,614 shares in the company, valued at approximately $4,353,456.78. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Shantanu Narayen sold 32,000 shares of Adobe stock in a transaction dated Friday, December 22nd. The shares were sold at an average price of $598.28, for a total transaction of $19,144,960.00. Following the sale, the chief executive officer now directly owns 377,928 shares in the company, valued at approximately $226,106,763.84. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 44,425 shares of company stock worth $26,431,673. 0.15% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. VELA Investment Management LLC grew its holdings in Adobe by 122.2% in the first quarter. VELA Investment Management LLC now owns 1,958 shares of the software company’s stock worth $892,000 after purchasing an additional 1,077 shares during the period. Bornite Capital Management LP bought a new position in Adobe during the 1st quarter valued at approximately $15,947,000. United Bank raised its stake in Adobe by 34.7% during the first quarter. United Bank now owns 2,109 shares of the software company’s stock valued at $961,000 after buying an additional 543 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Adobe by 21.0% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 525,897 shares of the software company’s stock worth $239,609,000 after acquiring an additional 91,328 shares in the last quarter. Finally, Ergoteles LLC grew its stake in shares of Adobe by 138.3% in the first quarter. Ergoteles LLC now owns 6,651 shares of the software company’s stock worth $3,030,000 after acquiring an additional 3,860 shares during the last quarter. Hedge funds and other institutional investors own 80.00% 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.