Sendero Wealth Management LLC Cuts Position in Adobe Inc. (NASDAQ:ADBE)

Sendero Wealth Management LLC decreased its holdings in Adobe Inc. (NASDAQ:ADBE) by 45.5% during the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 5,601 shares of the software company’s stock after selling 4,667 shares during the period. Sendero Wealth Management LLC’s holdings in Adobe were worth $2,826,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Wetzel Investment Advisors Inc. purchased a new stake in shares of Adobe during the fourth quarter valued at approximately $35,000. Steph & Co. raised its stake in shares of Adobe by 63.8% during the first quarter. Steph & Co. now owns 77 shares of the software company’s stock valued at $39,000 after purchasing an additional 30 shares during the period. Vima LLC purchased a new stake in shares of Adobe during the fourth quarter valued at approximately $55,000. Pineridge Advisors LLC purchased a new stake in shares of Adobe during the fourth quarter valued at approximately $60,000. Finally, Scarborough Advisors LLC purchased a new stake in shares of Adobe during the fourth quarter valued at approximately $61,000. Hedge funds and other institutional investors own 81.79% of the company’s stock.

Adobe Stock Performance

Shares of ADBE traded up $8.78 during midday trading on Friday, hitting $555.54. 5,077,912 shares of the stock traded hands, compared to its average volume of 3,590,147. Adobe Inc. has a 1-year low of $433.97 and a 1-year high of $638.25. The firm has a market capitalization of $248.88 billion, a PE ratio of 49.91, a price-to-earnings-growth ratio of 2.76 and a beta of 1.27. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.05 and a current ratio of 1.16. The business’s 50 day moving average price is $485.04 and its two-hundred day moving average price is $535.58.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Thursday, June 13th. The software company reported $4.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.39 by $0.09. Adobe had a net margin of 24.86% and a return on equity of 40.67%. The company had revenue of $5.31 billion during the quarter, compared to the consensus estimate of $5.29 billion. During the same quarter in the previous year, the company posted $3.04 earnings per share. The company’s revenue for the quarter was up 10.2% compared to the same quarter last year. Equities research analysts predict that Adobe Inc. will post 14.69 EPS for the current fiscal year.

Adobe announced that its Board of Directors has approved a stock repurchase program on Thursday, March 14th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to repurchase up to 10.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at Adobe

In related news, CAO Mark S. Garfield sold 96 shares of Adobe stock in a transaction dated 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 sale was disclosed in a document filed with the SEC, which is available through the SEC website. In other Adobe news, CAO Mark S. Garfield sold 96 shares of the business’s stock in a transaction dated Tuesday, April 16th. The shares were sold at an average price of $470.00, for a total value 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Shantanu Narayen sold 25,000 shares of the business’s stock in a transaction dated Thursday, June 27th. The stock was sold at an average price of $544.11, for a total transaction of $13,602,750.00. Following the completion of the sale, the chief executive officer now owns 379,660 shares in the company, valued at $206,576,802.60. The disclosure for this sale can be found here. Insiders have sold a total of 28,270 shares of company stock worth $15,165,916 over the last ninety days. 0.15% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have recently weighed in on ADBE. JMP Securities reissued a “market perform” rating on shares of Adobe in a research report on Friday, June 14th. TD Cowen decreased their price target on shares of Adobe from $640.00 to $625.00 and set a “buy” rating for the company in a research report on Monday, June 10th. Melius Research reissued a “hold” rating and set a $510.00 price target on shares of Adobe in a research report on Monday, June 10th. Citigroup decreased their price target on shares of Adobe from $554.00 to $529.00 and set a “neutral” rating for the company in a research report on Monday, June 10th. Finally, TheStreet downgraded shares of Adobe from a “b-” rating to a “c+” rating in a research report on Tuesday, March 19th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and twenty-one have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $607.67.

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.