Adobe (ADBE) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research cut shares of Adobe (NASDAQ:ADBE) from a buy rating to a hold rating in a report published on Wednesday, Zacks.com reports.

According to Zacks, “Adobe is riding on benefits from Magento and Marketo acquisitions and strong demand for its creative products. It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. Estimates have been stable lately ahead of the company’s Q2 earnings release. The company has mixed record of earnings surprises in recent quarters. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its bottom line. Notably, the stock has underperformed the industry it belongs to over a year.”

Several other analysts also recently issued reports on the company. Stephens assumed coverage on Adobe in a report on Wednesday, January 16th. They issued an equal weight rating and a $278.00 price target for the company. Cowen cut shares of Adobe from an outperform rating to a market perform rating and set a $280.00 price objective for the company. in a research report on Friday, February 15th. Morgan Stanley raised shares of Adobe from an equal weight rating to an overweight rating and upped their price objective for the company from $282.00 to $340.00 in a research report on Monday, April 29th. Robert W. Baird upped their price objective on shares of Adobe from $290.00 to $300.00 and gave the company an outperform rating in a research report on Friday, March 15th. Finally, Rosenblatt Securities reissued a buy rating and issued a $280.00 price objective on shares of Adobe in a research report on Friday, March 29th. Nine research analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $289.63.

NASDAQ ADBE traded down $3.70 during trading hours on Wednesday, hitting $279.85. The company had a trading volume of 2,209,951 shares, compared to its average volume of 2,348,577. Adobe has a fifty-two week low of $204.95 and a fifty-two week high of $291.70. The company has a market cap of $138.36 billion, a P/E ratio of 50.42, a P/E/G ratio of 2.77 and a beta of 1.11. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.33.

Adobe (NASDAQ:ADBE) last announced its quarterly earnings results on Thursday, March 14th. The software company reported $1.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.62 by ($0.25). Adobe had a net margin of 28.08% and a return on equity of 30.60%. The company had revenue of $2.58 billion during the quarter, compared to analyst estimates of $2.55 billion. During the same quarter in the prior year, the company posted $1.55 earnings per share. The firm’s revenue for the quarter was up 24.1% on a year-over-year basis. On average, sell-side analysts forecast that Adobe will post 6.24 EPS for the current fiscal year.

In other news, EVP Dana Rao sold 5,955 shares of the stock in a transaction dated Monday, March 18th. The shares were sold at an average price of $255.08, for a total transaction of $1,519,001.40. Following the transaction, the executive vice president now owns 17,087 shares of the company’s stock, valued at $4,358,551.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Ann Lewnes sold 3,000 shares of the stock in a transaction dated Wednesday, February 20th. The stock was sold at an average price of $258.13, for a total transaction of $774,390.00. Following the transaction, the executive vice president now directly owns 72,368 shares in the company, valued at approximately $18,680,351.84. The disclosure for this sale can be found here. Insiders have sold 59,936 shares of company stock worth $16,291,198 in the last ninety days. Corporate insiders own 0.32% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. M Holdings Securities Inc. lifted its holdings in Adobe by 32.9% in the first quarter. M Holdings Securities Inc. now owns 1,994 shares of the software company’s stock worth $531,000 after acquiring an additional 494 shares during the last quarter. Weiss Asset Management LP bought a new position in Adobe in the first quarter worth about $210,000. Horizon Investments LLC bought a new position in Adobe in the first quarter worth about $498,000. Lombard Odier Asset Management USA Corp increased its stake in shares of Adobe by 24.3% in the first quarter. Lombard Odier Asset Management USA Corp now owns 74,582 shares of the software company’s stock valued at $19,875,000 after purchasing an additional 14,582 shares during the period. Finally, Slow Capital Inc. acquired a new stake in shares of Adobe in the first quarter valued at approximately $1,340,000. 86.40% of the stock is currently owned by institutional investors and hedge funds.

About Adobe

Adobe Inc operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customer to download and access the latest versions of its creative products.

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