Royal Bank of Canada Reiterates “Outperform” Rating for Adobe (NASDAQ:ADBE)

Adobe (NASDAQ:ADBEGet Free Report)‘s stock had its “outperform” rating reissued by equities researchers at Royal Bank of Canada in a report released on Friday, Benzinga reports. They presently have a $600.00 target price on the software company’s stock. Royal Bank of Canada’s price target indicates a potential upside of 14.22% from the company’s previous close.

Several other equities analysts have also weighed in on ADBE. TD Cowen cut their price target on Adobe from $640.00 to $625.00 and set a “buy” rating for the company in a research note on Monday, June 10th. Evercore ISI restated an “outperform” rating and issued a $650.00 price objective on shares of Adobe in a research report on Friday, June 7th. Robert W. Baird increased their target price on Adobe from $525.00 to $545.00 and gave the company a “neutral” rating in a research report on Friday. UBS Group cut their price target on shares of Adobe from $600.00 to $540.00 and set a “neutral” rating for the company in a report on Friday, March 15th. Finally, Melius downgraded shares of Adobe from a “buy” rating to a “hold” rating and set a $510.00 price objective on the stock. in a report on Monday, June 10th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and twenty have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $604.35.

Read Our Latest Stock Analysis on ADBE

Adobe Trading Up 14.5 %

Shares of NASDAQ:ADBE opened at $525.31 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.14. Adobe has a 12-month low of $433.97 and a 12-month high of $638.25. The business has a 50 day moving average of $474.63 and a two-hundred day moving average of $540.63. The company has a market capitalization of $235.34 billion, a PE ratio of 47.20, a PEG ratio of 2.48 and a beta of 1.27.

Adobe (NASDAQ:ADBEGet Free Report) last announced its quarterly earnings results on Thursday, June 13th. The software company reported $4.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.39 by $0.09. Adobe had a net margin of 24.86% and a return on equity of 39.98%. The firm had revenue of $5.31 billion for the quarter, compared to the consensus estimate of $5.29 billion. During the same period in the prior year, the firm posted $3.04 earnings per share. The firm’s quarterly revenue was up 10.2% compared to the same quarter last year. As a group, analysts forecast that Adobe will post 14.55 EPS for the current year.

Adobe announced that its Board of Directors has initiated a share buyback program on Thursday, March 14th that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the software company to reacquire up to 10.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Adobe

In other Adobe news, insider Anil Chakravarthy sold 100 shares of Adobe stock in a transaction on Monday, April 22nd. The stock was sold at an average price of $471.00, for a total value of $47,100.00. Following the sale, the insider now owns 33,609 shares in the company, valued at $15,829,839. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In related news, insider Anil Chakravarthy sold 100 shares of the firm’s stock in a transaction dated Monday, April 22nd. The stock was sold at an average price of $471.00, for a total transaction of $47,100.00. Following the completion of the sale, the insider now directly owns 33,609 shares of the company’s stock, valued at approximately $15,829,839. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Scott Belsky sold 2,713 shares of the company’s stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $474.30, for a total transaction of $1,286,775.90. Following the completion of the transaction, the executive vice president now directly owns 21,114 shares in the company, valued at approximately $10,014,370.20. The disclosure for this sale can be found here. Over the last three months, insiders have sold 3,006 shares of company stock worth $1,424,432. Insiders own 0.15% of the company’s stock.

Institutional Trading of Adobe

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Adobe during the 4th quarter worth approximately $3,277,785,000. Wellington Management Group LLP raised its stake in shares of Adobe by 1,213.5% in the fourth quarter. Wellington Management Group LLP now owns 2,024,438 shares of the software company’s stock valued at $1,207,780,000 after acquiring an additional 1,870,307 shares in the last quarter. International Assets Investment Management LLC purchased a new position in Adobe in the fourth quarter valued at $875,592,000. Swedbank AB acquired a new position in Adobe during the 1st quarter worth $621,179,000. Finally, Price T Rowe Associates Inc. MD increased its holdings in Adobe by 17.6% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 7,644,050 shares of the software company’s stock worth $3,857,189,000 after purchasing an additional 1,146,718 shares during the period. Hedge funds and other institutional investors own 81.79% of the company’s stock.

About Adobe

(Get Free Report)

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.

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Analyst Recommendations for Adobe (NASDAQ:ADBE)

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