Wall Street Zen Downgrades Adobe (NASDAQ:ADBE) to Hold

Adobe (NASDAQ:ADBE) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.

Several other research analysts have also weighed in on ADBE. Robert W. Baird upped their target price on shares of Adobe from $410.00 to $425.00 and gave the stock a “neutral” rating in a research report on Monday, June 16th. Redburn Atlantic lowered shares of Adobe from a “hold” rating to a “strong sell” rating and lowered their target price for the stock from $420.00 to $280.00 in a research report on Wednesday, July 2nd. Royal Bank Of Canada restated an “outperform” rating and set a $480.00 target price on shares of Adobe in a research report on Thursday, June 5th. DA Davidson restated a “buy” rating and set a $500.00 target price on shares of Adobe in a research report on Friday, June 20th. Finally, Oppenheimer cut their target price on shares of Adobe from $530.00 to $500.00 and set an “outperform” rating for the company in a research report on Friday, June 13th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Adobe presently has an average rating of “Moderate Buy” and a consensus target price of $467.58.

Adobe Stock Up 2.5%

ADBE stock opened at $362.09 on Friday. The stock has a market capitalization of $153.60 billion, a PE ratio of 23.17, a price-to-earnings-growth ratio of 1.72 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 of $366.57 and a 200-day moving average of $389.64. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.99 and a current ratio of 0.99.

Adobe (NASDAQ:ADBE) last issued its earnings results on Thursday, June 12th. The software company reported $5.06 earnings per share for the quarter, topping the consensus estimate of $4.97 by $0.09. Adobe had a net margin of 30.39% and a return on equity of 53.68%. The company had revenue of $5.87 billion for the quarter, compared to analyst estimates of $5.80 billion. During the same period in the prior year, the business posted $4.48 earnings per share. The firm’s revenue for the quarter was up 10.6% compared to the same quarter last year. Adobe has set its Q3 2025 guidance at 5.150-5.200 EPS. FY 2025 guidance at 20.500-20.700 EPS. As a group, analysts expect that Adobe will post 16.65 EPS for the current year.

Institutional Investors Weigh In On Adobe

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Stance Capital LLC purchased a new stake in shares of Adobe during the second quarter worth about $1,272,000. Cim Investment Management Inc. grew its holdings in shares of Adobe by 99.7% during the second quarter. Cim Investment Management Inc. now owns 7,438 shares of the software company’s stock worth $3,093,000 after buying an additional 3,713 shares in the last quarter. North Dallas Bank & Trust Co. purchased a new stake in shares of Adobe during the second quarter worth about $1,654,000. B. Riley Wealth Advisors Inc. purchased a new stake in shares of Adobe during the second quarter worth about $1,982,000. Finally, Newbridge Financial Services Group Inc. grew its holdings in shares of Adobe by 29.5% during the second quarter. Newbridge Financial Services Group Inc. now owns 1,348 shares of the software company’s stock worth $522,000 after buying an additional 307 shares in the last quarter. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

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.