Adobe (NASDAQ:ADBE) Shares Gap Down After Analyst Downgrade

Adobe Inc. (NASDAQ:ADBEGet Rating) gapped down before the market opened on Friday after Evercore ISI lowered their price target on the stock from $650.00 to $475.00. The stock had previously closed at $365.08, but opened at $350.69. Adobe shares last traded at $355.98, with a volume of 50,259 shares changing hands.

ADBE has been the topic of several other research reports. Argus lowered their price target on shares of Adobe from $764.00 to $575.00 and set a “buy” rating on the stock in a research report on Monday, March 28th. Bank of America lowered their price target on shares of Adobe from $560.00 to $450.00 and set a “buy” rating on the stock in a research report on Friday. UBS Group lowered their price target on shares of Adobe from $450.00 to $415.00 in a research report on Friday. Oppenheimer lowered their price target on shares of Adobe from $560.00 to $400.00 and set an “outperform” rating on the stock in a research report on Friday. Finally, StockNews.com lowered shares of Adobe from a “buy” rating to a “hold” rating in a research report on Tuesday, May 17th. Seven equities research analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $502.07.

In other news, Director John E. Warnock sold 615 shares of Adobe stock in a transaction dated Thursday, April 14th. The shares were sold at an average price of $432.03, for a total transaction of $265,698.45. Following the sale, the director now owns 410,165 shares of the company’s stock, valued at approximately $177,203,584.95. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John E. Warnock sold 5,000 shares of Adobe stock in a transaction dated Tuesday, April 26th. The shares were sold at an average price of $404.30, for a total transaction of $2,021,500.00. Following the transaction, the director now directly owns 405,165 shares of the company’s stock, valued at $163,808,209.50. The disclosure for this sale can be found here. In the last three months, insiders sold 11,538 shares of company stock worth $4,793,387. Insiders own 0.23% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Welch & Forbes LLC raised its holdings in shares of Adobe by 4.1% during the fourth quarter. Welch & Forbes LLC now owns 82,260 shares of the software company’s stock valued at $46,646,000 after purchasing an additional 3,210 shares during the last quarter. Peak Financial Management Inc. bought a new stake in Adobe during the fourth quarter valued at approximately $201,000. Benjamin Edwards Inc. bought a new stake in Adobe during the fourth quarter valued at approximately $35,000. Rather & Kittrell Inc. bought a new stake in Adobe during the fourth quarter valued at approximately $47,000. Finally, Ayrshire Capital Management LLC bought a new stake in Adobe during the fourth quarter valued at approximately $5,023,000. 82.54% of the stock is owned by hedge funds and other institutional investors.

The firm’s 50-day moving average is $409.29 and its 200-day moving average is $475.76. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market capitalization of $168.04 billion, a P/E ratio of 35.30, a price-to-earnings-growth ratio of 1.95 and a beta of 1.08.

Adobe (NASDAQ:ADBEGet Rating) last announced its earnings results on Thursday, June 16th. The software company reported $3.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.31 by $0.04. Adobe had a net margin of 29.90% and a return on equity of 36.47%. During the same quarter last year, the business earned $2.56 earnings per share. As a group, analysts forecast that Adobe Inc. will post 11.09 EPS for the current fiscal year.

About Adobe (NASDAQ:ADBE)

Adobe Inc 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.

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