Adobe (NASDAQ:ADBE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday, Zacks.com reports. The brokerage presently has a $300.00 price objective on the software company’s stock. Zacks Investment Research‘s target price points to a potential upside of 8.37% from the stock’s current price.
According to Zacks, “Adobe is driven by acquisitions, strong demand for its creative products and solid efforts for product innovation. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. 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 Q2 earnings release. The company has mixed record of earnings surprises in recent quarters. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its bottom line. Notably, the stock has underperformed the industry it belongs to over a year.”
Several other research firms also recently commented on ADBE. DZ Bank reaffirmed a “hold” rating on shares of Adobe in a research report on Friday, February 22nd. Morgan Stanley raised Adobe from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $282.00 to $340.00 in a research report on Monday, April 29th. Canaccord Genuity upped their target price on Adobe from $290.00 to $300.00 and gave the company a “buy” rating in a research report on Friday, March 15th. Cowen downgraded Adobe from an “outperform” rating to a “market perform” rating and set a $280.00 target price on the stock. in a research report on Friday, February 15th. Finally, BidaskClub downgraded Adobe from a “buy” rating to a “hold” rating in a research report on Wednesday, February 20th. Nine analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of “Buy” and an average target price of $289.63.
Adobe (NASDAQ:ADBE) last posted its earnings results on Thursday, March 14th. The software company reported $1.37 EPS for the quarter, missing the consensus estimate of $1.62 by ($0.25). Adobe had a net margin of 28.08% and a return on equity of 30.60%. The firm had revenue of $2.58 billion during the quarter, compared to analyst estimates of $2.55 billion. During the same period in the previous year, the company posted $1.55 EPS. Adobe’s revenue for the quarter was up 24.1% compared to the same quarter last year. On average, analysts anticipate that Adobe will post 6.24 EPS for the current year.
In related news, EVP Donna Morris sold 10,000 shares of the stock in a transaction that occurred on Monday, April 29th. The stock was sold at an average price of $290.00, for a total transaction of $2,900,000.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Ann Lewnes sold 3,000 shares of the stock in a transaction that occurred on Wednesday, February 20th. The stock was sold at an average price of $258.13, for a total value of $774,390.00. Following the sale, the executive vice president now directly owns 72,368 shares in the company, valued at approximately $18,680,351.84. The disclosure for this sale can be found here. Insiders have sold 56,936 shares of company stock worth $15,481,738 in the last three months. 0.32% of the stock is currently owned by company insiders.
Several hedge funds have recently modified their holdings of the business. Oregon Public Employees Retirement Fund boosted its holdings in shares of Adobe by 24,198.5% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 38,660,570 shares of the software company’s stock valued at $171,000 after purchasing an additional 38,501,463 shares in the last quarter. Vanguard Group Inc boosted its holdings in shares of Adobe by 1.0% in the 3rd quarter. Vanguard Group Inc now owns 37,046,965 shares of the software company’s stock valued at $10,000,828,000 after purchasing an additional 349,019 shares in the last quarter. BlackRock Inc. boosted its holdings in shares of Adobe by 0.7% in the 1st quarter. BlackRock Inc. now owns 32,843,461 shares of the software company’s stock valued at $8,752,453,000 after purchasing an additional 213,902 shares in the last quarter. Jennison Associates LLC boosted its holdings in shares of Adobe by 2.8% in the 4th quarter. Jennison Associates LLC now owns 9,101,137 shares of the software company’s stock valued at $2,059,041,000 after purchasing an additional 249,440 shares in the last quarter. Finally, Lunia Capital LP boosted its holdings in shares of Adobe by 23,384.5% in the 4th quarter. Lunia Capital LP now owns 8,928,109 shares of the software company’s stock valued at $8,928,000 after purchasing an additional 8,890,092 shares in the last quarter. 86.40% of the stock is currently owned by hedge funds and other 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 customer to download and access the latest versions of its creative products.
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