Robert W. Baird Lowers Adobe Price Target

Analysts at Robert W. Baird have revised their price target for Adobe (NASDAQ:ADBE), cutting it from $490.00 to $410.00, as reported Wednesday. This adjustment comes alongside a maintained "neutral" rating on the software giant's stock. The new price target suggests a potential upside of approximately 4.76% from the stock's previous closing price.

Adobe has been the subject of various recent analyses. For instance, Royal Bank of Canada lowered its price target for Adobe shares from $550.00 to $530.00, while maintaining an "outperform" rating. Citigroup also adjusted its target down from $551.00 to $490.00, keeping a "neutral" stance. Additionally, StockNews.com downgraded Adobe from a "strong-buy" to a "buy" rating, while Redburn Atlantic initiated coverage with a "neutral" rating.

Meanwhile, Morgan Stanley lowered its price target from $660.00 to $600.00, while still rating it as "overweight." As it stands, one research analyst has given Adobe a sell rating, ten analysts have rated it as a hold, seventeen have expressed a buy rating, and one has issued a strong buy rating. Based on available data from MarketBeat.com, Adobe currently holds a consensus rating of "Moderate Buy" with a consensus target price of $538.80.

Adobe Stock Performance

When trading began on Wednesday, Adobe's stock opened at $391.37. Over the past year, the stock has seen a low of $374.50 and a high of $587.75. The company's market capitalization is $170.40 billion, with a P/E ratio of 31.56 and a P/E/G ratio of 2.15. Adobe has a debt-to-equity ratio of 0.29, along with a current and quick ratio of 1.07 each. Furthermore, its 50-day simple moving average stands at $435.77, while the 200-day moving average is at $479.02.

Recent Earnings and Insider Activity

On March 12, Adobe released its quarterly earnings report, revealing earnings per share (EPS) of $5.08, which exceeded analysts’ expectations of $4.97 by $0.11. The firm reported a revenue of $5.71 billion for the quarter, surpassing the estimated $5.66 billion. Adobe's net margin stood at 25.85%, with a return on equity of 45.87%. Year-over-year, the company previously posted an EPS of $4.48. Analysts predict Adobe will achieve an EPS of 16.65 for the current fiscal year.

In insider news, Chief Accounting Officer Jillian Forusz sold 334 shares on January 28 at an average price of $435.83, totalling approximately $145,567. Following this sale, she owns 2,685 shares valued at around $1,170,203.56. Meanwhile, Executive Vice President Scott Belsky sold 3,819 shares on January 27, worth about $1,643,086.56. Post-transaction, he retains ownership of 18,334 shares valued at approximately $7,888,020.16. Notably, these transactions have resulted in a 11.06% and a 17.24% decrease in their respective ownership stakes. Over the last three months, insiders have sold a total of 5,075 shares, amounting to $2,191,826, while 0.16% of the stock is currently held by insiders.

Institutional Trading Activity

Several institutional investors have altered their stakes in Adobe. Notably, State Street Corp increased its holding by 1.2% during the third quarter, now owning 20,270,287 shares valued at approximately $10.5 billion after acquiring an additional 234,909 shares. Geode Capital Management LLC also increased its holdings by 1.4% during the fourth quarter, owning 10,680,375 shares worth nearly $4.74 billion. FMR LLC saw an 8.8% increase in holdings during the third quarter, possessing 9,690,163 shares worth about $5 billion. Other institutional activities include Norges Bank's new stake acquisition worth approximately $2.55 billion and UBS Asset Management increasing its stake by 12.7% in the fourth quarter.

Institutional investors constitute 81.79% of Adobe's total stock ownership.

About Adobe

Adobe Inc, along with its subsidiaries, operates as a diversified software company globally, segmented into Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides various products, services, and solutions to help individuals, teams, and enterprises create, publish, and promote content.

Adobe, Analyst, Stock