Adobe (NASDAQ:ADBE) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Adobe (NASDAQ:ADBE – Get Rating) announced its earnings results on Wednesday. The software company reported $3.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.68 by $0.12, Briefing.com reports. The company had revenue of $4.66 billion for the quarter, compared to analyst estimates of $4.62 billion. Adobe had a return on equity of 36.74% and a net margin of 27.01%. Adobe’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.84 earnings per share.

Adobe Stock Up 1.7 %

ADBE stock traded up $5.87 during mid-day trading on Friday, hitting $359.16. The stock had a trading volume of 1,174,823 shares, compared to its average volume of 2,934,195. The stock has a market capitalization of $164.70 billion, a price-to-earnings ratio of 34.98, a PEG ratio of 2.08 and a beta of 1.27. The company has a fifty day moving average of $352.73 and a 200 day moving average of $334.30. Adobe has a 1-year low of $274.73 and a 1-year high of $473.49. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.26.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Stifel Nicolaus boosted their target price on Adobe from $375.00 to $400.00 in a research report on Friday, December 16th. Wolfe Research cut their target price on Adobe from $440.00 to $420.00 in a research report on Thursday. William Blair assumed coverage on Adobe in a research report on Tuesday, January 17th. They set an “outperform” rating on the stock. BMO Capital Markets boosted their target price on Adobe from $395.00 to $400.00 and gave the stock a “market perform” rating in a research report on Thursday. Finally, Wells Fargo & Company boosted their target price on Adobe from $350.00 to $360.00 and gave the stock an “equal weight” rating in a research report on Thursday. Sixteen equities research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $415.70.

Insider Transactions at Adobe

In other news, CEO Shantanu Narayen sold 15,000 shares of the company’s stock in a transaction dated Friday, January 20th. The stock was sold at an average price of $346.61, for a total transaction of $5,199,150.00. Following the completion of the sale, the chief executive officer now owns 408,866 shares in the company, valued at approximately $141,717,044.26. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other news, CEO Shantanu Narayen sold 15,000 shares of the company’s stock in a transaction dated Friday, January 20th. The stock was sold at an average price of $346.61, for a total transaction of $5,199,150.00. Following the completion of the sale, the chief executive officer now owns 408,866 shares in the company, valued at approximately $141,717,044.26. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Dana Rao sold 5,018 shares of the company’s stock in a transaction dated Tuesday, December 20th. The stock was sold at an average price of $336.93, for a total value of $1,690,714.74. Following the sale, the executive vice president now owns 14,832 shares of the company’s stock, valued at approximately $4,997,345.76. The disclosure for this sale can be found here. In the last quarter, insiders sold 26,265 shares of company stock worth $9,067,344. 0.24% of the stock is owned by corporate insiders.

Institutional Trading of Adobe

Several hedge funds have recently added to or reduced their stakes in ADBE. Norges Bank bought a new stake in Adobe during the 4th quarter valued at approximately $1,757,029,000. Moneta Group Investment Advisors LLC boosted its stake in Adobe by 115,991.0% during the 4th quarter. Moneta Group Investment Advisors LLC now owns 3,248,225 shares of the software company’s stock valued at $1,093,125,000 after purchasing an additional 3,245,427 shares during the period. Morgan Stanley boosted its stake in Adobe by 17.7% during the 4th quarter. Morgan Stanley now owns 9,804,275 shares of the software company’s stock valued at $3,299,433,000 after purchasing an additional 1,471,861 shares during the period. CI Private Wealth LLC bought a new stake in Adobe during the 4th quarter valued at approximately $73,750,000. Finally, Mackenzie Financial Corp boosted its stake in Adobe by 48.3% during the 1st quarter. Mackenzie Financial Corp now owns 369,278 shares of the software company’s stock valued at $168,250,000 after purchasing an additional 120,268 shares during the period. Institutional investors own 79.36% of the company’s stock.

Adobe Company Profile

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Adobe, Inc engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat.