Adobe (NASDAQ:ADBE) Hits New 1-Year Low on Analyst Downgrade

Adobe Inc. (NASDAQ:ADBE)’s share price hit a new 52-week low during trading on Friday after UBS Group lowered their price target on the stock from $525.00 to $475.00. UBS Group currently has a neutral rating on the stock. Adobe traded as low as $425.32 and last traded at $432.27, with a volume of 1045369 shares traded. The stock had previously closed at $441.00.

A number of other research analysts have also recently commented on the company. Stifel Nicolaus decreased their price target on Adobe from $650.00 to $600.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. DA Davidson decreased their target price on Adobe from $685.00 to $625.00 and set a “buy” rating on the stock in a research note on Thursday, December 12th. Oppenheimer dropped their target price on Adobe from $625.00 to $600.00 and set an “outperform” rating for the company in a research report on Thursday, December 12th. Mizuho reduced their price target on shares of Adobe from $640.00 to $620.00 and set an “outperform” rating on the stock in a research report on Thursday, December 12th. Finally, JMP Securities restated a “market perform” rating on shares of Adobe in a report on Thursday, December 12th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, seventeen have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $582.96.

Insider Activity

In other Adobe news, Director Amy Banse sold 606 shares of the stock in a transaction on Friday, December 6th. The stock was sold at an average price of $550.00, for a total value of $333,300.00. Following the completion of the transaction, the director now owns 32,929 shares in the company, valued at approximately $18,110,950. This represents a 1.81 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Scott Belsky sold 1,530 shares of Adobe stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $513.82, for a total transaction of $786,144.60. Following the sale, the executive vice president now owns 18,831 shares of the company’s stock, valued at approximately $9,675,744.42. The trade was a 7.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 3,293 shares of company stock valued at $1,679,809. Insiders own 0.15% of the company’s stock.

Institutional Investors Weigh In On Adobe

Large investors have recently added to or reduced their stakes in the business. Founders Financial Securities LLC lifted its holdings in Adobe by 4.3% in the 2nd quarter. Founders Financial Securities LLC now owns 2,103 shares of the software company’s stock valued at $1,168,000 after purchasing an additional 86 shares in the last quarter. FSB Premier Wealth Management Inc. purchased a new stake in Adobe in the 2nd quarter worth approximately $211,000. Larson Financial Group LLC raised its holdings in Adobe by 149.8% in the 2nd quarter. Larson Financial Group LLC now owns 537 shares of the software company’s stock valued at $298,000 after acquiring an additional 322 shares during the last quarter. GPM Growth Investors Inc. purchased a new position in shares of Adobe during the 2nd quarter worth $3,763,000. Finally, Stablepoint Partners LLC boosted its holdings in shares of Adobe by 27.9% during the second quarter. Stablepoint Partners LLC now owns 1,447 shares of the software company’s stock worth $776,000 after purchasing an additional 316 shares during the last quarter. 81.79% of the stock is owned by institutional investors and hedge funds.

Adobe Stock Performance

The firm has a market cap of $188.38 billion, a PE ratio of 34.51, a P/E/G ratio of 2.51 and a beta of 1.29. The stock has a 50-day moving average price of $492.21 and a 200 day moving average price of $521.97. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.11 and a quick ratio of 1.11.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings data on Wednesday, December 11th. The software company reported $4.81 EPS for the quarter, beating analysts’ consensus estimates of $4.67 by $0.14. Adobe had a net margin of 25.85% and a return on equity of 45.22%. The company had revenue of $5.61 billion during the quarter, compared to the consensus estimate of $5.54 billion. During the same quarter in the prior year, the company posted $3.52 EPS. The company’s quarterly revenue was up 11.1% compared to the same quarter last year. Research analysts forecast that Adobe Inc. will post 16.73 earnings per share for the current year.

Adobe Company Profile

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.