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

According to Zacks, “Adobe’s top-line will continue to benefit from strong demand for the company’s innovative solutions and growing subscriptions for its cloud application. It has outperformed the industry it belongs to in the last one year. 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. However, end-market recovery appears slow which remains a matter of concern.”

Several other research firms have also weighed in on ADBE. Credit Suisse Group reiterated an “outperform” rating and issued a $250.00 price objective on shares of Adobe Systems in a research note on Thursday, May 10th. Canaccord Genuity reaffirmed a “buy” rating and set a $245.00 price objective (up previously from $220.00) on shares of Adobe Systems in a report on Friday, March 16th. Morgan Stanley reaffirmed an “equal weight” rating and set a $235.00 price objective (up previously from $193.00) on shares of Adobe Systems in a report on Friday, March 16th. Pivotal Research reissued a “hold” rating and issued a $199.00 price target (up previously from $195.00) on shares of Adobe Systems in a research note on Friday, March 16th. Finally, JPMorgan Chase reissued a “neutral” rating and issued a $235.00 price target (up previously from $210.00) on shares of Adobe Systems in a research note on Friday, March 16th. Ten research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $219.50.

ADBE opened at $236.85 on Wednesday. The firm has a market cap of $116.91 billion, a P/E ratio of 65.97, a PEG ratio of 2.74 and a beta of 1.04. Adobe Systems has a 1 year low of $235.84 and a 1 year high of $237.36. The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.22.

Adobe Systems (NASDAQ:ADBE) last announced its quarterly earnings results on Thursday, March 15th. The software company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.44 by $0.11. Adobe Systems had a return on equity of 24.42% and a net margin of 24.40%. The company had revenue of $2.08 billion during the quarter, compared to analysts’ expectations of $2.05 billion. During the same quarter in the previous year, the firm earned ($0.43) earnings per share. The business’s quarterly revenue was up 23.6% compared to the same quarter last year. analysts predict that Adobe Systems will post 5.35 earnings per share for the current year.

In other news, Director John E. Warnock sold 5,000 shares of Adobe Systems stock in a transaction that occurred on Tuesday, March 20th. The shares were sold at an average price of $224.94, for a total value of $1,124,700.00. Following the completion of the sale, the director now directly owns 16,088 shares in the company, valued at $3,618,834.72. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Ann Lewnes sold 2,942 shares of Adobe Systems stock in a transaction that occurred on Wednesday, May 16th. The stock was sold at an average price of $236.59, for a total transaction of $696,047.78. Following the completion of the sale, the executive vice president now owns 70,322 shares of the company’s stock, valued at $16,637,481.98. The disclosure for this sale can be found here. Over the last three months, insiders have sold 46,819 shares of company stock valued at $10,451,729. 0.33% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Greenleaf Trust lifted its holdings in shares of Adobe Systems by 9.6% in the first quarter. Greenleaf Trust now owns 2,649 shares of the software company’s stock worth $572,000 after buying an additional 231 shares in the last quarter. Iberiabank Corp grew its holdings in shares of Adobe Systems by 2.1% in the fourth quarter. Iberiabank Corp now owns 12,277 shares of the software company’s stock worth $2,151,000 after purchasing an additional 253 shares during the last quarter. Reilly Financial Advisors LLC lifted its stake in Adobe Systems by 85.2% in the first quarter. Reilly Financial Advisors LLC now owns 576 shares of the software company’s stock worth $124,000 after acquiring an additional 265 shares during the period. Bank of Stockton lifted its stake in Adobe Systems by 4.8% in the fourth quarter. Bank of Stockton now owns 6,150 shares of the software company’s stock worth $1,077,000 after acquiring an additional 280 shares during the period. Finally, Mitsubishi UFJ Securities Holdings Co. Ltd. lifted its stake in Adobe Systems by 42.3% in the first quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 1,010 shares of the software company’s stock worth $218,000 after acquiring an additional 300 shares during the period. Institutional investors own 86.80% of the company’s stock.

Adobe Systems Company Profile

Adobe Systems Incorporated 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. This segment's 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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Analyst Recommendations for Adobe Systems (NASDAQ:ADBE)

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