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

Evercore ISI reiterated their outperform rating on shares of Adobe (NASDAQ:ADBE) in a research report sent to investors on Friday morning, Benzinga reports. The firm currently has a $650.00 price objective on the software company’s stock.

ADBE has been the topic of a number of other research reports. BMO Capital Markets decreased their target price on shares of Adobe from $610.00 to $525.00 and set an outperform rating on the stock in a research note on Thursday, June 6th. JPMorgan Chase & Co. decreased their target price on Adobe from $600.00 to $570.00 and set a neutral rating for the company in a research report on Friday, March 15th. Bank of America decreased their price objective on Adobe from $700.00 to $640.00 and set a buy rating for the company in a report on Friday, March 15th. Royal Bank of Canada restated an outperform rating and issued a $630.00 price objective on shares of Adobe in a report on Wednesday, March 27th. Finally, Barclays cut their target price on Adobe from $700.00 to $630.00 and set an overweight rating on the stock in a research note on Friday, March 15th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and twenty have given a buy rating to the company. Based on data from MarketBeat, Adobe currently has an average rating of Moderate Buy and a consensus target price of $600.97.

Adobe Price Performance

ADBE opened at $459.94 on Friday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $206.05 billion, a P/E ratio of 43.97, a P/E/G ratio of 2.52 and a beta of 1.27. The company’s 50-day simple moving average is $475.87 and its two-hundred day simple moving average is $544.12. Adobe has a 52-week low of $433.97 and a 52-week high of $638.25.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings data on Thursday, March 14th. The software company reported $4.48 earnings per share for the quarter, topping 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 firm had revenue of $5.18 billion for the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the prior year, the business earned $2.97 EPS. The business’s quarterly revenue was up 11.3% on a year-over-year basis. As a group, analysts predict that Adobe will post 14.55 EPS for the current year.

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

Insiders Place Their Bets

In other news, EVP Scott Belsky sold 2,713 shares of the stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $474.30, for a total transaction of $1,286,775.90. Following the transaction, the executive vice president now owns 21,114 shares in the company, valued at approximately $10,014,370.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other news, EVP Scott Belsky sold 2,713 shares of the stock in a transaction that occurred on Thursday, May 2nd. The stock was sold at an average price of $474.30, for a total transaction of $1,286,775.90. Following the transaction, the executive vice president now owns 21,114 shares in the company, valued at approximately $10,014,370.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CAO Mark S. Garfield sold 97 shares of the stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $468.41, for a total value of $45,435.77. Following the transaction, the chief accounting officer now owns 4,128 shares in the company, valued at approximately $1,933,596.48. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,006 shares of company stock worth $1,424,432. Corporate insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Barlow Wealth Partners Inc. acquired a new stake in shares of Adobe in the 4th quarter worth $16,700,000. Federated Hermes Inc. increased its stake in shares of Adobe by 22.6% in the 4th quarter. Federated Hermes Inc. now owns 223,667 shares of the software company’s stock worth $133,440,000 after acquiring an additional 41,164 shares during the last quarter. Mainsail Financial Group LLC increased its stake in shares of Adobe by 9.6% in the 4th quarter. Mainsail Financial Group LLC now owns 2,100 shares of the software company’s stock worth $1,252,000 after acquiring an additional 184 shares during the last quarter. Team Hewins LLC acquired a new stake in shares of Adobe in the 3rd quarter worth $4,141,000. Finally, Vise Technologies Inc. increased its stake in shares of Adobe by 267.3% in the 4th quarter. Vise Technologies Inc. now owns 7,769 shares of the software company’s stock worth $4,635,000 after acquiring an additional 5,654 shares during the last quarter. Hedge funds and other institutional investors own 81.79% of the company’s stock.

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.