Adobe (NASDAQ:ADBE) Shares Down 0.3% – Time to Sell?

Adobe Inc. (NASDAQ:ADBE) experienced a slight dip of 0.3% on Wednesday, trading down to $442.81 before closing at $444.68. The trading volume was approximately 2,281,872 shares, which is notably lower than the average daily volume of 3,292,693 shares, indicating a 31% decline. The stock had previously closed at $445.80.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on Adobe's stock performance. BMO Capital Markets has lowered its price target for Adobe from $600.00 to $570.00, while maintaining an "outperform" rating. Similarly, Barclays decreased their target from $675.00 to $645.00, also issuing an "overweight" rating. Another analyst, Sanford C. Bernstein, revised their price target from $644.00 to $587.00, keeping an "outperform" rating intact. JMP Securities continues to have a "market perform" rating, while Deutsche Bank has adjusted its target from $650.00 to $600.00, offering a "buy" rating. In total, out of the analysts covering the stock, two have given it a sell rating, eight a hold rating, seventeen a buy rating, and two a strong buy rating. According to MarketBeat.com, Adobe holds a consensus rating of "Moderate Buy" with an average target price of $584.88.

Stock Performance Overview

Currently, Adobe's fifty-day moving average price is $492.21, and its two-hundred day moving average price stands at $521.97. The company boasts a market capitalization of $194.13 billion, with a price-to-earnings ratio (P/E) of 35.56 and a P/E growth (P/E/G) ratio of 2.51. Moreover, the stock has a beta of 1.29, indicating its volatility relative to the market. Adobe's financial health reflects a current ratio of 1.11 and a quick ratio also at 1.11, alongside a debt-to-equity ratio of 0.28.

Recent Earnings Report

Adobe recently reported its earnings results for the last quarter on December 11. The software giant reported earnings per share (EPS) of $4.81, surpassing the consensus estimate of $4.67 by $0.14. Additionally, Adobe showcased a return on equity of 45.22% and a net margin of 25.85%. The quarterly revenue reached $5.61 billion, beating analysts’ expectations of $5.54 billion. This represented an impressive 11.1% increase in revenue compared to the same quarter the previous year. Forward-looking analysts predict that Adobe will report an EPS of 16.73 for the current fiscal year.

Insider Activity at Adobe

In recent insider activities, Executive Vice President Scott Belsky sold 1,530 shares on October 15, at an average price of $513.82, totaling $786,144.60. Belsky retains ownership of 18,831 shares, valued at approximately $9,675,744.42, marking a 7.51% reduction in his stake. Director Amy Banse also sold 606 shares on December 6 at an average price of $550.00, generating a total of $333,300. After this, Banse owns 32,929 shares worth about $18,110,950, which is a 1.81% decline from her previous ownership. Over the last quarter, insiders sold a total of 3,293 shares for $1,679,809. Currently, corporate insiders own about 0.15% of Adobe's stock.

Institutional Trading Activity

Recent changes in positions among institutional investors and hedge funds show a trend of increasing investments in Adobe. Old Port Advisors raised its position by 5.2%, ending the fourth quarter with 867 shares valued at $386,000 after acquiring an additional 43 shares. Similarly, 1ST Source Bank increased its holdings by 0.7% during the third quarter, owning 2,889 shares worth $1,496,000. DGS Capital Management also grew its stake by 1.8%, holding 2,436 shares valued at $1,261,000. Oddo BHF Asset Management entered a new investment stake worth $14,622,000 during the same third quarter. Inspire Trust Co. N.A. added to its position by 9.1%, owning 5,714 shares worth $2,959,000. Overall, institutional investors control 81.79% of Adobe's stock.

About Adobe

Adobe Inc. operates globally as a diversified software company through its various segments, including Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment focuses on providing products and services that assist individuals and organizations in creating and promoting content, as well as offering Document Cloud, a comprehensive cloud-based document services platform.

Adobe, Investors, Stock