Melius Downgrades Adobe (NASDAQ:ADBE) to Sell

Adobe (NASDAQ:ADBE) was downgraded by equities research analysts at Melius from a “hold” rating to a “sell” rating in a note issued to investors on Monday, Marketbeat.com reports. They currently have a $310.00 target price on the software company’s stock. Melius’ target price indicates a potential downside of 8.40% from the company’s previous close.

A number of other brokerages also recently weighed in on ADBE. Rothschild & Co Redburn downgraded shares of Adobe from a “neutral” rating to a “sell” rating and set a $280.00 target price on the stock. in a research note on Wednesday, July 2nd. Citigroup decreased their price target on shares of Adobe from $465.00 to $450.00 and set a “neutral” rating on the stock in a report on Monday, June 16th. Oppenheimer dropped their price objective on shares of Adobe from $530.00 to $500.00 and set an “outperform” rating for the company in a report on Friday, June 13th. Piper Sandler cut their target price on shares of Adobe from $600.00 to $500.00 and set an “overweight” rating for the company in a research report on Wednesday, April 23rd. Finally, UBS Group raised their price target on Adobe from $380.00 to $430.00 and gave the company a “neutral” rating in a research report on Monday, June 9th. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, Adobe currently has a consensus rating of “Moderate Buy” and a consensus target price of $467.58.

Adobe Stock Up 1.4%

ADBE opened at $338.43 on Monday. The firm has a market capitalization of $143.56 billion, a P/E ratio of 21.65, a price-to-earnings-growth ratio of 1.58 and a beta of 1.51. Adobe has a one year low of $330.04 and a one year high of $587.75. The company has a fifty day moving average price of $375.67 and a 200-day moving average price of $394.37. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.99 and a quick ratio of 0.99.

Adobe (NASDAQ:ADBE) last posted its earnings results on Thursday, June 12th. The software company reported $5.06 EPS for the quarter, topping the consensus estimate of $4.97 by $0.09. Adobe had a return on equity of 53.68% and a net margin of 30.39%. The business had revenue of $5.87 billion during the quarter, compared to analysts’ expectations of $5.80 billion. During the same period in the previous year, the business earned $4.48 earnings per share. The firm’s revenue was up 10.6% on a year-over-year basis. Equities research analysts expect that Adobe will post 16.65 earnings per share for the current fiscal year.

Institutional Trading of Adobe

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in Adobe by 0.4% in the first quarter. Vanguard Group Inc. now owns 41,143,835 shares of the software company’s stock worth $15,779,895,000 after buying an additional 171,547 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Adobe by 14.4% during the 1st quarter. Bank of New York Mellon Corp now owns 6,530,611 shares of the software company’s stock worth $2,504,685,000 after acquiring an additional 821,293 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Adobe by 2.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,468,383 shares of the software company’s stock worth $2,097,289,000 after acquiring an additional 126,688 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Adobe by 12.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,341,695 shares of the software company’s stock worth $2,375,345,000 after acquiring an additional 600,146 shares in the last quarter. Finally, Northern Trust Corp lifted its stake in shares of Adobe by 14.5% in the 4th quarter. Northern Trust Corp now owns 5,314,215 shares of the software company’s stock valued at $2,363,125,000 after purchasing an additional 672,919 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

About Adobe

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.