Adobe (NASDAQ:ADBE) Trading Down 2.4% After Analyst Downgrade

Adobe Inc. (NASDAQ:ADBE) shares traded down 2.4% during mid-day trading on Wednesday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. Morgan Stanley now has a $450.00 price target on the stock, down from their previous price target of $520.00. Adobe traded as low as $347.80 and last traded at $353.27. 5,974,102 shares were traded during mid-day trading, an increase of 50% from the average session volume of 3,969,932 shares. The stock had previously closed at $361.78.

A number of other equities analysts have also recently issued reports on the company. Rothschild & Co Redburn cut Adobe from a “neutral” rating to a “sell” rating and set a $280.00 price objective for the company. in a report on Wednesday, July 2nd. Wall Street Zen upgraded Adobe from a “hold” rating to a “buy” rating in a report on Friday, September 5th. Wells Fargo & Company reiterated an “overweight” rating and issued a $470.00 price objective (up from $430.00) on shares of Adobe in a report on Friday, June 13th. Royal Bank Of Canada cut their price objective on Adobe from $480.00 to $430.00 and set an “outperform” rating for the company in a report on Monday, September 8th. Finally, Robert W. Baird upped their price objective on Adobe from $410.00 to $425.00 and gave the stock a “neutral” rating in a report on Monday, June 16th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $433.41.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Dakota Community Bank & Trust NA raised its position in shares of Adobe by 12.8% in the 2nd quarter. Dakota Community Bank & Trust NA now owns 274 shares of the software company’s stock worth $106,000 after acquiring an additional 31 shares in the last quarter. Caldwell Trust Co bought a new position in shares of Adobe in the 2nd quarter worth approximately $1,676,000. Watts Gwilliam & Co. LLC bought a new position in shares of Adobe in the 2nd quarter worth approximately $397,000. Amiral Gestion raised its position in shares of Adobe by 69.7% in the 2nd quarter. Amiral Gestion now owns 96,949 shares of the software company’s stock worth $37,508,000 after acquiring an additional 39,830 shares in the last quarter. Finally, WT Wealth Management bought a new position in shares of Adobe in the 2nd quarter worth approximately $1,632,000. Institutional investors own 81.79% of the company’s stock.

Adobe Price Performance

The stock has a market cap of $149.86 billion, a P/E ratio of 22.01, a price-to-earnings-growth ratio of 1.62 and a beta of 1.48. The firm has a 50-day moving average price of $355.60 and a 200-day moving average price of $375.14. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.99 and a current ratio of 1.02.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.18 by $0.13. Adobe had a return on equity of 57.54% and a net margin of 30.01%.The firm had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.91 billion. During the same quarter in the prior year, the company earned $4.65 EPS. The business’s revenue was up 10.7% compared to the same quarter last year. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. On average, analysts forecast that Adobe Inc. will post 16.65 earnings per share for the current fiscal year.

Adobe Company Profile

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.