Evercore ISI Reaffirms “Outperform” Rating for Adobe (NASDAQ:ADBE)

Evercore ISI reissued their outperform rating on shares of Adobe (NASDAQ:ADBE) in a research note released on Friday, Benzinga reports. The brokerage currently has a $650.00 price target on the software company’s stock.

Several other equities analysts have also recently commented on ADBE. Bank of America lowered their price target on shares of Adobe from $700.00 to $640.00 and set a buy rating on the stock in a report on Friday, March 15th. DA Davidson reiterated a buy rating and issued a $685.00 price objective on shares of Adobe in a report on Thursday, March 28th. Mizuho reiterated a buy rating and issued a $640.00 price objective (down from $680.00) on shares of Adobe in a report on Friday. StockNews.com upgraded shares of Adobe from a hold rating to a buy rating in a report on Tuesday, June 4th. Finally, Piper Sandler Companies decreased their price objective on shares of Adobe from $705.00 to $700.00 and set an overweight rating for the company in a report on Friday, March 15th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and twenty have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of Moderate Buy and a consensus price target of $600.97.

Adobe Price Performance

Shares of NASDAQ:ADBE opened at $459.94 on Friday. The company’s fifty day moving average is $475.87 and its two-hundred day moving average is $544.12. The company has a quick ratio of 1.05, a current 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 company has a market cap of $206.05 billion, a P/E ratio of 43.97, a price-to-earnings-growth ratio of 2.52 and a beta of 1.27.

Adobe (NASDAQ:ADBE) last announced its earnings results on Thursday, March 14th. The software company reported $4.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.38 by $0.10. Adobe had a net margin of 24.08% and a return on equity of 39.12%. The company had revenue of $5.18 billion for the quarter, compared to the consensus estimate of $5.14 billion. During the same period in the previous year, the business earned $2.97 EPS. The company’s revenue was up 11.3% on a year-over-year basis. Equities analysts expect that Adobe will post 14.55 earnings per share for the current fiscal year.

Adobe announced that its board has authorized a stock 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 shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Adobe

In other news, EVP Scott Belsky sold 2,713 shares of the stock in a transaction that occurred on 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 sale, the executive vice president now directly owns 21,114 shares of the company’s stock, valued at $10,014,370.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, EVP Scott Belsky sold 2,713 shares of the stock in a transaction that occurred on 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 sale, the executive vice president now directly owns 21,114 shares of the company’s stock, valued at $10,014,370.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Mark S. Garfield sold 96 shares of the stock in a transaction that occurred on Tuesday, April 16th. The shares were sold at an average price of $470.00, for a total transaction of $45,120.00. Following the sale, the chief accounting officer now directly owns 4,128 shares in the company, valued at $1,940,160. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 3,006 shares of company stock valued at $1,424,432. Corporate insiders own 0.15% of the company’s stock.

Hedge Funds Weigh In On Adobe

Hedge funds and other institutional investors have recently bought and sold shares of the business. WealthPlan Investment Management LLC raised its holdings in Adobe by 223,500.0% in the third quarter. WealthPlan Investment Management LLC now owns 4,472 shares of the software company’s stock worth $2,280,000 after purchasing an additional 4,470 shares during the period. Jump Financial LLC acquired a new stake in Adobe in the third quarter worth $355,000. Choreo LLC raised its holdings in Adobe by 10.1% in the third quarter. Choreo LLC now owns 1,254 shares of the software company’s stock worth $639,000 after purchasing an additional 115 shares during the period. Herold Advisors Inc. raised its holdings in Adobe by 5.3% in the third quarter. Herold Advisors Inc. now owns 1,000 shares of the software company’s stock worth $510,000 after purchasing an additional 50 shares during the period. Finally, Canada Pension Plan Investment Board raised its holdings in shares of Adobe by 349.1% during the third quarter. Canada Pension Plan Investment Board now owns 250,210 shares of the software company’s stock worth $127,582,000 after acquiring an additional 194,500 shares during the period. 81.79% of the stock is owned by 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.