Adobe (NASDAQ:ADBE) Given “Outperform” Rating at Royal Bank Of Canada

Adobe (NASDAQ:ADBE)‘s stock had its “outperform” rating reiterated by analysts at Royal Bank Of Canada in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $350.00 price target on the software company’s stock. Royal Bank Of Canada’s price target would indicate a potential upside of 37.07% from the company’s previous close.

ADBE has been the topic of a number of other reports. Stifel Nicolaus decreased their target price on shares of Adobe from $450.00 to $400.00 and set a “buy” rating on the stock in a research note on Friday, March 13th. Sanford C. Bernstein set a $447.00 price target on Adobe and gave the company an “outperform” rating in a research report on Friday, March 13th. Summit Redstone set a $350.00 price target on Adobe in a report on Friday, April 17th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Adobe in a research report on Wednesday. Finally, BTIG Research assumed coverage on Adobe in a research note on Monday, April 13th. They set a “neutral” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $338.15.

Adobe Trading Down 1.2%

Shares of ADBE opened at $255.35 on Friday. Adobe has a 52-week low of $224.13 and a 52-week high of $419.82. The stock has a market cap of $103.21 billion, a PE ratio of 14.88, a price-to-earnings-growth ratio of 1.00 and a beta of 1.42. The firm’s fifty day moving average is $245.51 and its two-hundred day moving average is $282.08. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47.

Adobe (NASDAQ:ADBE) last issued its earnings results on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating analysts’ consensus estimates of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analysts’ expectations of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company’s quarterly revenue was up 12.0% compared to the same quarter last year. During the same period in the prior year, the business earned $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Research analysts forecast that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe announced that its board has authorized a stock buyback plan on Tuesday, April 21st that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the software company to buy up to 24.9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Adobe

In related news, CAO Jillian Forusz sold 755 shares of the firm’s stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $246.25, for a total transaction of $185,918.75. Following the completion of the transaction, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This trade represents a 17.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Shantanu Narayen sold 75,000 shares of the firm’s stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the completion of the transaction, the chief executive officer directly owned 359,538 shares of the company’s stock, valued at approximately $87,561,884.52. The trade was a 17.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 over the last quarter. 0.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Adobe

A number of hedge funds have recently added to or reduced their stakes in the business. MCF Advisors LLC lifted its holdings in shares of Adobe by 20.8% in the third quarter. MCF Advisors LLC now owns 174 shares of the software company’s stock worth $61,000 after buying an additional 30 shares in the last quarter. SWAN Capital LLC grew its stake in Adobe by 43.1% during the third quarter. SWAN Capital LLC now owns 103 shares of the software company’s stock valued at $36,000 after acquiring an additional 31 shares in the last quarter. Logan Capital Management Inc. increased its holdings in Adobe by 0.3% during the 3rd quarter. Logan Capital Management Inc. now owns 9,789 shares of the software company’s stock worth $3,453,000 after acquiring an additional 32 shares during the period. Cornerstone Planning Group LLC increased its holdings in Adobe by 33.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 133 shares of the software company’s stock worth $47,000 after acquiring an additional 33 shares during the period. Finally, Peoples Bank KS lifted its stake in Adobe by 1.6% in the 4th quarter. Peoples Bank KS now owns 2,041 shares of the software company’s stock worth $714,000 after purchasing an additional 33 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Adobe Company Profile

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.