Investors Buy Adobe Systems (ADBE) on Weakness

Traders bought shares of Adobe Systems Incorporated (NASDAQ:ADBE) on weakness during trading on Friday. $135.74 million flowed into the stock on the tick-up and $100.10 million flowed out of the stock on the tick-down, for a money net flow of $35.64 million into the stock. Of all stocks tracked, Adobe Systems had the 28th highest net in-flow for the day. Adobe Systems traded down ($1.59) for the day and closed at $243.56

Several analysts have commented on ADBE shares. Zacks Investment Research cut shares of Adobe Systems from a “buy” rating to a “hold” rating in a research note on Tuesday, March 20th. Argus boosted their price objective on shares of Adobe Systems from $195.00 to $234.00 and gave the company a “buy” rating in a research note on Tuesday, January 30th. Royal Bank of Canada boosted their price objective on shares of Adobe Systems to $235.00 and gave the company an “outperform” rating in a research note on Wednesday, February 28th. JMP Securities cut shares of Adobe Systems from an “outperform” rating to a “market perform” rating in a research note on Monday, March 26th. Finally, Citigroup boosted their price objective on shares of Adobe Systems to $250.00 and gave the company a “buy” rating in a research note on Friday, March 16th. Ten equities research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Adobe Systems currently has a consensus rating of “Buy” and a consensus price target of $221.38.

The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.12 and a current ratio of 2.12. The stock has a market cap of $119.95 billion, a price-to-earnings ratio of 67.84, a PEG ratio of 2.81 and a beta of 1.04.



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

Adobe Systems declared that its board has approved a stock repurchase program on Monday, May 21st that permits the company to repurchase $8.00 billion in shares. This repurchase authorization permits the software company to reacquire up to 6.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its shares are undervalued.

In related news, Director Charles M. Geschke sold 16,000 shares of the stock in a transaction that occurred on Friday, April 20th. The shares were sold at an average price of $224.35, for a total transaction of $3,589,600.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Ann Lewnes sold 2,940 shares of the stock in a transaction that occurred on Thursday, March 22nd. The shares were sold at an average price of $223.86, for a total transaction of $658,148.40. Following the sale, the executive vice president now directly owns 76,201 shares of the company’s stock, valued at $17,058,355.86. The disclosure for this sale can be found here. Insiders sold 46,819 shares of company stock valued at $10,451,729 over the last quarter. Insiders own 0.33% of the company’s stock.

Large investors have recently modified their holdings of the stock. Cambridge Investment Research Advisors Inc. lifted its position in shares of Adobe Systems by 25.0% in the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 33,339 shares of the software company’s stock valued at $5,842,000 after acquiring an additional 6,663 shares in the last quarter. LPL Financial LLC increased its stake in Adobe Systems by 2.0% in the 4th quarter. LPL Financial LLC now owns 93,910 shares of the software company’s stock valued at $16,457,000 after buying an additional 1,832 shares during the period. Financial Advocates Investment Management acquired a new position in Adobe Systems in the 4th quarter valued at approximately $269,000. Guggenheim Capital LLC increased its stake in Adobe Systems by 17.7% in the 4th quarter. Guggenheim Capital LLC now owns 700,359 shares of the software company’s stock valued at $122,732,000 after buying an additional 105,208 shares during the period. Finally, Bank of Hawaii increased its stake in Adobe Systems by 93.3% in the 4th quarter. Bank of Hawaii now owns 10,030 shares of the software company’s stock valued at $1,758,000 after buying an additional 4,840 shares during the period. Institutional investors and hedge funds own 85.97% 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. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products.

Receive News & Ratings for Adobe Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Adobe Systems and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply