Adobe’s (ADBE) Outperform Rating Reiterated at Royal Bank Of Canada

Adobe (NASDAQ:ADBE)‘s stock had its “outperform” rating reiterated by Royal Bank Of Canada in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $350.00 price target on the software company’s stock. Royal Bank Of Canada’s target price would indicate a potential upside of 37.07% from the company’s current price.

A number of other brokerages also recently weighed in on ADBE. Oppenheimer reaffirmed a “market perform” rating on shares of Adobe in a research note on Friday, March 13th. DA Davidson set a $300.00 price target on shares of Adobe in a report on Friday, March 13th. William Blair cut shares of Adobe from an “outperform” rating to a “market perform” rating in a research report on Thursday, March 26th. HSBC set a $302.00 target price on shares of Adobe in a research report on Friday, February 13th. Finally, Sanford C. Bernstein set a $447.00 target price on Adobe and gave the company an “outperform” rating in a research note on Friday, March 13th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $338.15.

Adobe Price Performance

Adobe stock opened at $255.35 on Friday. The stock has a market cap of $103.21 billion, a price-to-earnings ratio of 14.88, a PEG ratio of 1.00 and a beta of 1.42. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The business has a 50-day simple moving average of $245.51 and a 200 day simple moving average of $282.08. Adobe has a 52 week low of $224.13 and a 52 week high of $419.82.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share for the quarter, beating the consensus estimate of $5.87 by $0.19. The firm had revenue of $6.40 billion for the quarter, compared to analysts’ expectations of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company’s revenue was up 12.0% compared to the same quarter last year. During the same quarter last year, the firm posted $5.08 EPS. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. On average, research analysts forecast that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its board has authorized a share buyback program on Tuesday, April 21st that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to purchase up to 24.9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, CEO Shantanu Narayen sold 75,000 shares of the business’s stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the transaction, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. The trade was a 17.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Jillian Forusz sold 755 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $246.25, for a total value of $185,918.75. Following the transaction, the chief accounting officer directly owned 3,521 shares of the company’s stock, valued at $867,046.25. The trade was a 17.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 77,091 shares of company stock valued at $18,782,773 over the last ninety days. 0.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Adobe

A number of hedge funds and other institutional investors have recently made changes to their positions in ADBE. Vanguard Group Inc. increased its position in Adobe by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 41,369,395 shares of the software company’s stock valued at $14,593,054,000 after purchasing an additional 344,816 shares during the period. State Street Corp boosted its holdings in shares of Adobe by 1.7% during the 3rd quarter. State Street Corp now owns 20,632,009 shares of the software company’s stock valued at $7,277,941,000 after buying an additional 352,448 shares in the last quarter. Geode Capital Management LLC grew its holdings in Adobe by 3.7% in the fourth quarter. Geode Capital Management LLC now owns 11,531,678 shares of the software company’s stock worth $4,027,170,000 after purchasing an additional 414,049 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Adobe by 9.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,792,275 shares of the software company’s stock worth $1,651,066,000 after buying an additional 563,772 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Adobe during the fourth quarter valued at $2,275,165,000. Institutional investors own 81.79% of the company’s stock.

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.